David Bilfeld, senior vice president with Colliers Bennett & Kahnweiler Inc. of Chicago, says the properties attracted several offers for First Bank of Illinois in Chicago. He tells GlobeSt.com that Platinum Management Services LLC won the deal in the end because it offered the best financial terms and quickest close.
Bilfeld says the complexes are scattered throughout the city, but they all have good bones. "They all sit on tons of land and have great unit mixes and tons of parking. They just needed better management and more of a hands-on operator," he says. "There's quite a bit of upside for the buyer." He says the 38-year-old portfolio was 80% occupied at below-market rents.
Bilfeld says the upside was one reason why the portfolio garnered so much attention. "We've seen a lot of interest in Shreveport from all sorts of investors," he adds.
Mark Florans with Platinum Management Services says he and his partners consider Shreveport to be an up-and-coming area and plan to acquire other assets in the city although nothing is under contract right now. He says Platinum will upgrade the apartments and hold them long term, managing them from New York City and outsourcing leasing assignments to Shreveport companies.
The portfolio consists of the 200-unit Villa Norte Apartments at 1620 Fullerton St.; 128-unit Pines Apartments at 8040 Line Ave.; 184-unit Kings Manor I at 7210 Bernstein Ave.; and 64-unit Kings Manor II at 1674 David Raines Rd. The portfolio is a mix of one-, two- and three-bedroom units, ranging from 482 sf to 1,100 sf. In-place rents are $300 to $550 per month whereas market rents are $345 to $625 per month.
© 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.