Butternut Ridge was built in 1993 and is 95% occupied, Joseph Mullen, president of Madison, tells GlobeSt.com. Madison is the multifamily operating subsidiary of Philadelphia-based Berwind Property Group, Ltd. Rents at Butternut Ridge average $1,000 a unit, Mullen says.
Mullen declined to disclose the price paid for Butternut Ridge alone, but tells GlobeSt.com Madison paid $52 million for the three-property package--$59,839 per unit--and will invest a total of $1.5 million in upgrades for the three complexes.
Butternut Ridge, which is being renamed Madison at Butternut Ridge, will be painted, and the parking lot will be refurbished, Mullen says.
The other properties in the package are the 264-unit Lincoln Crest Apartments and 344-unit Waterford Apartments in Atlanta.
Arthur P. Pasquarella, chief operating officer of Berwind, says in a statement, "the capital for these acquisitions is from BPG Investment Partnership V, a fully discretionary institutional investment account. We see our multifamily portfolio continuing to expand, as this type investment is a perfect complement to our other holdings in office, retail and hotels."
Mullen acknowledges to GlobeSt.com that, while all three properties have high occupancy rates in markets that are currently experiencing low apartment occupancy, "achieving these rates has required concessions. In times like these, we have to strike a balance, and we're pleased that the balance has been struck at these properties.
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