Fogelman, MAA Getting Ahead in Memphis Real Estate
- Jul 01, 2011
The current economic trend seems to favor leasing rather than buying, at least on the consumer residential market, thus providing excellent opportunities to investors who are looking for great deals in the multi-housing industry.
Memphis-based Fogelman Management Group appears to be one of those clever investors that spent the last few years studying the market, focusing on property management rather than acquisitions, while waiting for great opportunities to arise. “After being on the sidelines for the last three years with virtually no acquisitions, we saw the overall trends with occupancies and rents starting to rise and felt that 2011 was going to be a good time to re-enter the market on acquisitions,” Rick Fogelman told The Daily News in a recent interview.
This year the company made some really good investments in multifamily properties, enlarging its portfolio to 65 apartment communities in 14 states throughout the Southeast, Midwest and Southwest, including recent acquisition of the Orchards of Collierville, a 226-unit apartment community at 400 Orchard Circle W.
Fogelman Group partnered with DRA Advisors LLC, a New York company holding over 9 billion in assets under management, to close this deal and paid $15.7 million for the property. The Orchards appeared to be a very profitable acquisition due to the appealing area demographics and promising employment opportunities which are the pride of Collierville—and also due to its marvelous location across from the Town Hall and Public Library. The 21-acre complex is 97 percent occupied and it offers one-, two- and three-bedroom apartments, ranging from 807 to 1,250 sq. ft., plus community facilities such as two tennis courts, sanded volleyball court, a fitness room, and a swimming pool.
Another company that’s thriving on the real estate market is Memphis-based MAA which continues to make serious investments in apartment communities across the Sunbelt region of the U.S, reaching 47,000 units in 13 states. The latest deals include a Jacksonville complex, Tattersall at Tapestry Park, a 279-unit apartment community bought for $42.8 million according to the Jacksonville Business Journal, the Avala at Savannah Quarters, a 256-unit apartment community in Savannah, Ga. and The Hamptons at Hunton Park, a 300-unit upscale apartment community in Richmond, VA.