(To read more on the multifamily and TIC markets, click here.)

IRVINE, CA-Real Estate Partners has sold a multifamily portfolio of eight properties totaling approximately 2,400 units in North Carolina and Virginia to Core Realty Holdings LLC of Newport Beach for $166 million. Tom Thompson, president of Real Estate Partners, says that although his company has already realized an “outstanding return” on the portfolio, the properties hold the potential for upside for Core Realty and its tenant-in-common investors.

Real Estate Partners bought the portfolio in December 2003 in a value-added play that involved upgrades to the properties, improved management and a new leasing program. The upside for the new owners will come from the good locations of the properties and the “increasing rental demand in these markets,” according to Thompson.

In fact, Thompson adds, Real Estate Partners intends to pursue additional properties in these markets and along the East Coast because of the investment potential it sees there. Dawson Davenport, CEO of Real Estate Partners, points out that the sale of this portfolio to Core Realty completes the Real Estate Partners investment cycle two years earlier than projected for the properties.

Core Realty Holdings represented itself, and Real Estate Partners Inc. represented REP Fund Apartments LLC in the deal.

The sale of the portfolio is the latest in a series of multifamily transactions for Real Estate Partners, which in May purchased the Arbors at Warner Center Apartments in the heart of Warner Center in Woodland Hills for approximately $50 million. Real Estate Partners plans to spend more than $3 million to renovate the 250-unit apartment complex.

In another of its recent deals, the company is also investing between $30 million and $35 million to renovate approximately 2,500 apartment units in properties located in Texas, Louisiana and Arizona.In an earlier report on that deal that was published on GlobeSt.com, Real Estate Partners said that it expected the improvements will enable it to boost rents by up to 20%.

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