Praedium Group Buys 1,221-Unit Multifamily Portfolio for $26.3 Mil

NEW YORK CITY-Opportunity knocked and the Praedium Group, the New York City-based real estate investment firm, answered. Just six weeks after getting wind of the deal, Praedium has purchased a 1,221-unit multifamily portfolio in Florida and Georgia from Affirmative Equities for $26.3 million, or an average selling price of $21,600.

The deal was a textbook case in the distressed property world–an owner facing possible foreclosure, properties underleased compared to others in their market and the finance mechanisms in place to make the deal happen quickly. “It reminds me of the good old days,” says Frank Patafio, CFO of Praedium. “We’re an opportunistic firm looking for arbitrage opportunities in the market, and this was a classic case.”

Praedium focuses on adding value to underperforming, undervalued assets throughout North America, owning properties in all asset categories. Office buildings comprise approximately 55% of the holdings, with multifamily and mixed-use each at about 14%. This latest transaction increases the multifamily portfolio by 12%.