BATON ROUGE, LA-A class A multifamily complex has been snapped up by a group of local investors for $26.5 million. The new owners, up against 14 other offers, plan to immediately begin a condo conversion of the 234-unit Jefferson Place Apartments.
John Fetzer, Hardy Swyers, Allen Walsh and John McClelland are all experienced in multifamily real estate--construction and rehabilitation--but this is the first time they've joined forces on an acquisition. "They have substantial capital. They're well respected locally and definitely have the wherewithal to do this conversion," says Gregg Cordaro, president of locally based Cordaro Cos. He represented the buyers of 7975 N. Jefferson Place and its seller, Denver-based Apartment Investment and Management Co.
Cordaro tells GlobeSt.com that Jefferson Place Apartments represented a strong conversion opportunity to the buyers for several reasons: its location next to the upscale Bocage neighborhood and unit sizes. "The units are big, averaging about 1,400 sf each. And, they have high ceilings and hardwood floors," he says. "Plus, the condo market is still hot in Baton Rouge." The amount to be invested into the conversion is still being calculated, he adds.
Situated on 27 acres, Jefferson Place Apartments is 99% leased. The complex offers a mix of two- and three-bedroom apartments, ranging from 1,250 sf to 1,710 sf. The monthly rents start at $1,079 and top out at $1,529.
Aimco, which owned Jefferson Place Apartments nearly seven years, also is holding a contract to sell a multifamily property in Monroe. The deal for the REIT's last asset in the state is set to close next month.
Cordaro says Aimco's actions aren't part of a state-specific exit plan, but rather its typical MO. "They sell properties every five to 10 years," he explains. "Plus, these markets are hot right now."
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