ALEXANDRIA, VA-Home Properties, a Rochester, NY-based firm, has been investing a considerable amount of capital in acquiring--and in some cases renovating--apartment communities in the Mid-Atlantic. Its most recent deal--the acquisition of a 31-building, 937-unit apartment complex--closed here this week for $205 million.
All indications suggest that Home Properties, which did not return a call to GlobeSt.com in time for publication, is done with its acquisition spree, at least for this year. Year to date, the company has made more than $385 million in acquisitions, exceeding the $200 million to $350 million range it projected at the beginning of the year.
Its latest acquisition is Newport Village, which is located on both sides of West Braddock Road and North Beauregard Street. The 92.1% occupied property is trading for approximately $219,000 per unit. Home Properties is viewing the complex, built in 1969, as a value add play, and has plans to make $17 million worth of upgrades to the complex and then reposition it. Units currently rent for $1,561.
Also this month the company acquired an apartment community, Somerset Park in Leesburg, VA, for $20.25 million. The 108-unit project, which is 98.1% occupied, traded for $187,500 per apartment unit. In August, it acquired an apartment community in Baltimore’s White Marsh submarket for $90.4 million.
The company has also invested $25 million in a capital improvement project to reposition Arbor Park, another multifamily asset it owns in Alexandria. It is completely remodeling the 851-unit, 52-building complex.
Like many publicly-traded real estate companies, Home Properties has hit the equity markets to replenish its balance sheet. Earlier this year, it went to market with a public offering of 6 million shares priced at $58.50 per unit. It netted proceeds of $336.8 million.
At the time, the company said it would use the proceeds to fund acquisitions, new development and redevelopment of apartment communities and general corporate purposes.
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