It wasn't a fire sale by any means, Mike Jaynes, Hall's senior vice president of acquisitions and dispositions, tells GlobeSt.com. Everything that was on the "to go" list is gone. In all, 12 complexes, totaling 3,100 units, in Arizona. Florida, Indiana, Michigan, Tennessee and Texas are in the hands of 11 private investors.

Jaynes said the refinancing and dispositions are the result of last year's review of the communities, which totaled 14,000 units. It's been a case of "taking advantage of the lower interest rate environment and the multifamily-hungry environment" that have jumpstarted the portfolio adjustment, he explains.

The last sale closed Aug. 16. That was the 349-unit Centertree Apartments in Phoenix. All of the sold product was built in the 1970s and 1980s and carried an average occupancy in the low 90% at sale time, which began in January. Each complex brought about 15 letters of intent, a definite mark of today's hotbed of activity in the multifamily industry. Jaynes said Hall went into the sales mode even though the properties were good performers because they had less "minimal upside" than those selected for refinancing.

"It somewhat a product of the economy," Jaynes explains. "There's been a diversion of capital toward multifamily...and quite a few players who have paid a premium price." The investors paid between $1.4 million and $13.5 million for their deals. Tyler Anderson and Sean Cunningham, both of CB Richard Ellis Inc.'s Phoenix team, handled the dispositions.

The sales are history; today's focus is the refinancing. GE Capital Corp. has structured five deals so far and is in the process of lining up packages for possibly another 13. The refinanced communities and those still to come represent another 3,000 units with an average mid-90% occupancy. The completed deals carry interest rates under 7% and are 30-year amortizations with a 10-year balloon, says Jaynes. "You can't ignore these rates." The refinancing activity will wrap up by year's end.

None of the sold properties or refinanced ones are located in the Dallas-Ft. Worth metroplex. And, none of this year's activity means Hall is retreating from the multifamily industry. It's always been a core business, stresses Jaynes. In fact, Hall is eyeing possible acquisitions in the Midwest, all major Texas cities and Phoenix, he confides. As yet, nothing's under contract.

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