EL SEGUNDO, CA-Pacific Coast Capital Partners and San Francisco-based Jackson Square Properties have acquired 1,918 apartment units in Arizona, Texas, Georgia and Tennessee in nine class B properties. Eight of the complexes were in a group called the Maple Leaf Portfolio, and the ninth was a single-property sale.
The JV bought the eight properties in the Maple Leaf Portfolio from a private partnership based in Phoenix and acquired the ninth, which is in Tempe, AZ, from a joint venture between Carlsbad-based Crowne Pacific and Boston-based AEW Capital Management. The eight property portfolio was an off-market transaction and the sale of the Tempe complex was brokered by Tyler Anderson and Sean Cunningham of the Phoenix office of CB Richard Ellis.
The Tempe property sold for $19 million, but terms of the portfolio sale were not disclosed. At going rates for class B properties and considering that the occupancy levels of most of the complexes were in the high 90% range, industry sources estimate that the deal was well into the tens of millions of dollars.
The joint venture sees upside in improving most of the properties, according to Jennifer Diaz, VP of Pacific Coast Capital Partners. The improvements will consist primarily of an exterior facelift, catching up on deferred maintenance, implementing new marketing programs and instituting a utility billback program, she says.
Diaz says that PCCP sees upside in the properties because of the limited supply of new multifamily housing in most of the markets, along with solid market fundamentals. The deal is the second joint venture between PCCP and Jackson Square, with which PCCP partnered in late 2005 via a $12-million joint venture equity investment to finance the acquisition of the 350-unit Portola Del Sol apartment complex in Las Vegas.
The Tempe property was the 244-unit Lakefront Bay. The Georgia property in the Maple Leaf portfolio was the 344-unit Lincoln Parc in Atlanta. The Tennessee properties included the 209-unit Hickory Meadows and the 152-unit Silver Creek, both in Memphis.
The remaining five Maple Leaf complexes, all in Texas, were the 198-unit Greentree in Garland, the 188-unit Gables and the 200-unit Southgate in Round Rock, plus the 127-unit Hampton North and the 256-unit Huebner County, both in San Antonio.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.