JV Going Full Bore To Acquire Troubled MF

Though United Equity Ventures is new in the marketplace, it's already performing due diligence on its first potential acquisition, a 3,000-unit portfolio valued at approximately $250 million, that spans several states. United Equity principal and Partnered Property Acquisitions CEO Monte K. Lee-Wen tells GlobeSt.com that closing should take place in about 90 days.

"There's a lot on the streets right now, and we're targeting that," Lee-Wen explains. "There are lenders who don't want properties on their balance sheets, and we do want those properties. It's a win-win for us and the institutions."

Lee-Wen says the joint venture is focused solely on multifamily because of its rebound potential once the economy starts revving up again. He says desirable properties are those that have some value-add potential either on the physical or management side. "We'll deal with minor renovations," he comments, "but not full-out, rehab, class-C types of properties."

The ideal targets are portfolios with values north of $100 million, though the partnership will look at single assets that are valued at more than $20 million. Nor are the partners picky about location, though Lee-Wen says the sunbelt states would provide the most interest. "But we're buying portfolios," he points out. "We can't always pick the locations where the assets are in." United Equity will hold the assets for three to five years, depending on when the debt matures.

Lee-Wen says the partnership came about purely through serendipity, though Partnered Property's chief investment officer Dave Carter had a long-term relationship with Principle Equity's director of acquisitions Daniel Summers, and both organizations have consulted with one another in the past on deals. "We're both in Texas, we were both thinking the same things, namely

that now was a good time to go out after the distressed assets," Lee-Wen says.