The terms of the off-market transaction were not disclosed other than that the two firms are investing $300 million in the acquisition and subsequent upgrades to the seven communities. Jones Lang LaSalle’s Scott Melnick and Al Cissel brokered the transaction. WASHINGTON, DC-Starwood Capital Group and Bainbridge Companies have acquired a 1,626-unit multifamily portfolio spread across Virginia and Maryland from Equity Residential.
“That is because the area is so desirable and investors want to be here. “Yes, I would say this is a trend,” Cissel says. The deal follows a transaction last month in which a joint venture between Dune Real Estate Partners and Pantzer Properties closed on 8 apartment buildings for $460 million. A third large portfolio sale will be closing within the next 45 to 60 days, Melnick and Cissel tell GlobeSt.com. So people are willing to put their money to work.” This third deal involves more than 2,000 units and is focused in the Baltimore area, he says.
The Starwood, Bainbridge JV secured Freddie Mac financing for the deal – a seven-year loan at 4.87%. Bainbridge Management will manage the properties. The units in the buildings, which were delivered to the market between 1987 and 2002, average about 950 square feet each. He adds that there is not a particular hold period for this investment, although it will likely remain with the new owners for at least the medium term. The renovation plans call for upgrading amenities, interiors, exteriors, landscaping and signs. “These particular assets are excellent properties but they are somewhat older and area ready to have some improvements done to them,” Richard Schechter, CEO and managing principal of multifamily at Bainbridge, told GlobeSt.com.
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