Two Apartment Buildings Sell for $35M

FORT WAYNE, IN-Dial Equities, based in Omaha, has purchased two apartment buildings from an affiliate of Harbor Group International, based in Norfolk, VA. The communities, the 448-unit Willows of Coventry and 248-unit Pointe Inverness, had been bought by HGI in May 2002 for $31.4 million.

Richard Litton, president of HGI, tells GlobeSt.com that his firm held onto the properties for just the right amount of time. "Our holding period is typically in the four-to-five year range," he says. "The property performed well, and hit income numbers." While holding the complexes, the company spent more than $3 million upgrading them.

The Pointe Inverness complex has 18 two-story buildings, and is 92% occupied, with asking rates from $520 to $749 per month. Willows of Coventry contains 28 two-story buildings and is 94% occupied, with asking rates of $520 to $705. Both properties have unit amenities such as full-size washers and dryers, wood-burning fireplaces and extra storage areas. Both were built in 1987.

Litton says his company, which owns more than six million sf of office and 12,000 apartment units in the US and United Kingdom, is not planning on making any more investments in small Midwest markets. "We have two large properties in Indianapolis, and another in the pipeline, but I don't know that we'll be back in the smaller markets on the buy side for a while," he says.