Record $1.8B Apt. Portfolio Sale to Lone Star Includes 7 Triangle Properties

Seven Triangle apartment properties were part of one of this year’s largest multi-family transactions, the Triangle Business Journal reports.

Walnut Creek in Raleigh

by Adriana Pop, Associate Editor

Seven Triangle apartment properties were part of one of this year’s largest multi-family transactions, the Triangle Business Journal reports.

In a deal valued at more than $1.8 billion, Bell Partners Inc. of Greensboro and DRA Advisors LLC of New York have sold a portfolio of 20,439 apartment units in 64 communities across the nation to global private equity firm Lone Star Funds. The sale closed on September 30th, 2014.

According to the newspaper, seven of those 64 multi-family properties are located in Wake, Durham and Orange counties. The communities, which total about 2,400 apartment units with a cumulative value of about $150 million, include:

  • The  516-unit Walnut Creek at 3201 Walnut Creek Parkway in Raleigh, valued at $31.6 million;
  • The 423-unit Reserve at Lake Lynn at 650 Lake Front Drive in Raleigh, valued at $23.2 million;
  • The 404-unit Spring Forest at 5014 Sedgewick Drive, in Raleigh, valued at $21 million;
  • The 332-unit Meadows at Kildaire at 2600 Harvest Creek Place in Cary, valued at $28.5 million;
  • The 278-unit Copper Mill at 5140 Copper Ridge Drive in Durham, valued at $19.5 million;
  • The 212-unit Woodland Court at 3004 Dorner Circle in Raleigh, valued at $14.6 million;
  • The 188-unit Crest in Carrboro, valued at $8.2 million.

Bell Partners, the 12th largest multifamily management company in the US, will continue to manage the 64 communities under Lone Star’s ownership.

“This portfolio has generated strong cash yields and has benefited from our active asset management approach throughout the hold period. The end result is a great deal for our clients, with returns well ahead of expectations,” David Luski, president of DRA Advisors, said in a news release.

“We are very pleased with the outcome of this investment. In addition, we appreciate the trust that Lone Star has placed in our operating capabilities in keeping Bell on as the manager of these communities. In this respect, this transaction is both a win for our investors and our associates,” added Jon Bell, president of Bell Partners.

The 64 properties sold by DRA/Bell to Lone Star were originally part of a joint venture acquisition made by DRA/Bell in 2008 of 86 apartment communities with 25,684 apartment homes located across the U.S. The transaction was the largest in the multifamily industry in that year. Later on, DRA/Bell sold 22 communities to other investors, with Lone Star ultimately buying the remaining 64 apartment communities included in the original purchase. CBRE represented the sellers in this transaction.

Photo credits: www.bellapartmentliving.com