Multifamily/Seniors Housing Beat

GE Capital brings huge apartment purchase to life

In a joint venture with two partners, Stamford, Conn.-based GE Capital Real Estate has purchased 52 apartment complexes located primarily in Texas, Georgia and North Carolina for $670 million. San Mateo, Calif.-based Glenborough Realty Trust and Dallas-based Walden Properties were the sellers of the portfolio, which contains 13,000 units. The Galesi Group, Schenectady, N.Y., and Dallas-based Westdale Asset Management are GE Capital's partners in the venture. GE Capital provided $116 million of equity in the deal.

The portfolio features Class-A and Class-B apartments. Approximately 45% of the units were built after 1990, and about 40% were constructed between 1980 and 1990. Westdale will manage the apartments.

Want a view of Manhattan? SSR Realty can provide it

On behalf of a pension fund client, SSR Realty Advisors Inc. has purchased three Class-A apartment complexes in northern New Jersey for $96 million. Edgewater, N.J.-based Daibes Development was the seller. SSR is based in San Francisco and White Plains, N.Y.

All three communities are located along the Hudson River in Edgewater, across from Manhattan. The properties included in the deal are: The Towers at Mariners Cove, a 178-unit high-rise facility; Mariners Cove, which features 44 townhome apartments; and Mariners Landing, a 110-unit garden-style complex. All of the properties feature views of the Manhattan skyline.

Bergen County, N.J., which includes Edgewater, “is one of the least affordable single-family-home markets in the country,” said Phillip Bakalchuk, acquisitions director for SSR Realty, in a statement announcing the deal. “With the high cost of housing and lack of developable land, SSR Realty believes the future supply of rental product [in the area] should be controlled and predictable.”

AvalonBay increases its presence in the Windy City

Alexandria, Va.-based AvalonBay Communities Inc. has nearly doubled its Chicago presence with the purchase of 200 Arlington Heights, a 409-unit apartment complex, for $49.1 million. Irving, Texas-based Archon Residential Management was the seller. AvalonBay's new acquisition increases the number of apartments the company owns in the Chicago area by 46% and is the firm's largest community in the market. Including 200 Arlington Heights, AvalonBay owns four apartment complexes in the Chicago area, for a total of 1,296 units.

The Arlington Heights complex, which features approximately 40,000 sq. ft. of retail space, offers studios, and one- and two-bedroom units. The property features one mid- and one high-rise building. AvalonBay has plans to renovate the complex's fitness center and community room.

Malone Mortgage helps Texas apartments get off the ground

Dallas-based Malone Mortgage Co. has provided $31.6 million in financing for two new apartment communities in Texas. The firm provided a $12.9 million loan for Saddlebrook South Apartments, a 216-unit complex in Waco. Dallas-based ZZ&Z Properties is the developer of the project, which is slated for completion in February 2002. The complex will feature 27 buildings, a clubhouse and two swimming pools.

Malone Mortgage also provided an $18.7 million loan for Bardin Greene Apartments, a 285-unit community in Arlington that is slated for completion in June 2002. Dallas-based Windsor Communities is the developer of the community, which will feature 20 buildings, a pool, a clubhouse and a volleyball court.

Both loans feature 40-year terms and were provided through the U.S. Department of Housing and Urban Development's (HUD) 221 (d)(3) full insurance Multifamily Accelerated Processing (MAP) program.

No mere plebeian, Lend Lease buys The Patrician complex

On behalf of an institutional investor client, Atlanta-based Lend Lease Real Estate Investments Inc. has purchased The Patrician, a 139-unit independent living complex for seniors in San Diego. Delmar, Calif.-based Dermont Co. was the seller of the property. Terms of the transaction were not disclosed.

The Patrician, which was built in 1986 and located in the University Town Center section of San Diego, will undergo a $4.2 million renovation and expansion. Approximately 7,700 sq. ft. will be added for six new two-bedroom units. Also, 8,000 sq. ft. of the complex will be renovated to add a kitchen, dining room, craft studio, fitness center and other amenities.

Bovis Lend Lease, which is Lend Lease's construction and project management arm, will provide construction management oversight during the redevelopment. Cordia Senior Living, Lend Lease's senior living property-management company, will manage The Patrician.

In other seniors housing news, the National Healthcare Association, Lynbrook, N.Y., has purchased Cambridge Manor, a 160-bed skilled nursing facility in Fairfield, Conn., for $11.8 million. Denver-based AIMCO was the seller. The CB Richard Ellis Senior Housing Services Group, San Diego, represented both parties in the transaction.

Cambridge Manor sits on 5.5 acres. The property was 98% occupied at the time of the sale.

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