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CHICAGO-Transwestern Investment Co. LLC has closed its Transwestern Multifamily Partners LLC fund after receiving more than $225 million in equity, says Ed Ryder, a managing director and head of acquisitions for the fund. The fund was started a year ago and is focusing on multifamily with expectations of holding between 20 and 25 properties when the fund is fully committed. The expected value of the fund is expected to be about $750 million, Ryder says.

Transwestern started the fund a year ago. Currently, about one-third of the equity is committed with the fund current’s value approximately $250 million, he says. The hold period for the assets will be from five to seven years, he says. The fund has “a core plus strategy with an income orientation,” Ryder says. “We are trying to make a little bit more of our money from income than capital appreciation.”

The most recent acquisitions for the fund were the 292-unit Briarhill Apartments in Atlanta and the 514-unit Grand Venetian at Las Colinas, 6205 Love Dr., Irving, TX. The Briarhill Apartments were acquired for $31.5 million from B & M Management, based in Birmingham, AL. The Grand Venetian at Las Colinas was acquired from Archstone-Smith Trust, as previously reported by GlobeSt.com. The sales price was not disclosed but Ryder did say that it was more than the previously estimated $46 million. The expected first year yield for Briar Hill is 5.5% stabilizing at 6.5% and the expected yield at Grand Venetian being closer to 6%, he says.

Transwestern will renovate the kitchens of the units at Briarhill with new appliances and cabinets in addition to some other renovations for a total cost of approximately $4,000 per unit, he says. The average unit size at Briarhill is 872 sf with an average projected monthly rent the first year of $860. The average unit size at the Grand Venetian is 937 sf with an average projected monthly rent the first year of $995, Ryder says.

The fund is expected to close this week on a 250-unit apartment complex in Atlanta with an acquisition price in the “mid-$30-million” range, Ryder says. Transwestern is also involved in a $25-million joint venture development in Phoenix, with “a major developer” for a 168-unit apartment complex and has a pre-sale agreement for a $100-million project in Falls Church, VA, he says.

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