DALLAS-In an off-market play, Invesco Real Estate Advisors has replaced Dubai Investment Group as majority owner in a $1-billion multifamily portfolio after a 15-month run. The game plan is renovate and actively manage the Sun Belt package of nearly 21,000 units in 57 properties.
"We like the fact that we were able to negotiate an off-market transaction with Dubai and the Milestone Group," Max Swango, global partner for the Dallas-based Invesco, tells GlobeSt.com, "and gain access to quality multifamily properties in markets we believe are in a recovery mode." The portfolio crisscrosses the South from Arizona to Georgia, with all four Texas metros as part of the playing field.
Swango says Invesco was asked by Milestone to take over Dubai's stake in the former Walden Residential Properties' portfolio. "Milestone believes in the portfolio so they brought us in to replace Dubai," he explains. All that he'll say about the behind-the-scenes funding is it belongs to more than one institutional client.
The deal is one of Invesco's largest transactions and its first with the New York City-based Milestone. Swango says the overall plan is a five-year hold. The class A and B assets, all built since the mid-1980s, will be paced through varying degrees of upgrades, some being set up for sale and others kept long term, he explains. The cap-ex pool isn't being made public nor is the portfolio's occupancy an easy-to-get fact.
What is being made clear is Invesco plans to be hands-on. "Our plans are to absolutely manage this portfolio and extensively renovate," Swango says. The properties are being overseen by Milestone Management Co. of Dallas, formed in March 2005 when the then-23,000-unit portfolio was bought.
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