CHICAGO-CharterMac has provided $46 million to join a 10-property multifamily portfolio purchased this year by two Chicago-based companies. CharterMac recently paid the funds to join a partnership created by Levin Realty Advisors LLC and Walton Street Capital, which this summer bought 10-propety Levin Realty Apartment Portfolio, comprised of 2,730 units, in Illinois, Dallas, Kansas City, Minneapolis, St. Louis and Atlanta markets.
The properties were purchased in June from the Greenwood Village, CO-based Laramar Group for $200 million. A portion of the CharterMac funds will be used to implement renovation programs to reposition the assets, and new management will be added, says a company spokesman.
David Levin, president of Levin Realty, tells GlobeSt.com that the purchase was made to look for real estate opportunities that provide value-added enhancement. He says the company is very confident of the popularity of the products in each market.
"We think there's still pockets that exist that have not caught up with the swing of a more renter-occupied marketplace than homeowner marketplace," Levin says. "A lot of it is dependent on supply and the cost of living in the various markets, there's a limited supply of future rental properties coming online. Some have been taken offline, even, because of condominium conversions. Also, home prices have gone up in every one of these submarkets significantly."
Jun Sakumoto, director of CharterMac Urban Capital in the company's Irvine, CA office, tells GlobeSt.com that his company sees the properties as institutional quality. "A lot of these submarkets have fundamentals of recovery," he says.
The properties include Hunters Glen in Aurora, IL; Villas of Vista Ridge in Lewisville, TX; Sheffield Square in Grand Prairie, TX; Quail Run in Kansas City, MO; Kingsridge in Blue Springs, MO; Town Centre at Lexington in Eagan, MN; The Greens at Edinburgh in Brooklyn Park, MN; Plymouth Square at 37th in Plymouth, MN; Sandalwood Creek in St. Charles, MO; and Wildwood Gables in Atlanta.
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