Madison is the multifamily operating subsidiary of Philadelphia-based Berwind Property Group.
Joseph Mullen, Madison's president, declined to disclose the purchase price of individual properties in the transaction, but confirms the $52-million package price to GlobeSt.com. He says his company will invest a total of $1.5 million in upgrades at the three properties.
Lincoln Crest, which will become Madison at Forest Glen, was built in 1987 and is 93% occupied. Rents average $800 per unit. It will receive most of the $1.5-million renovation fund for re-siding of the entire property, Mullen says. The seller is Dallas-based Lincoln Property Co.
The Waterford Apartments, to be renamed Madison at The Waterford, was built in 1990 and is 87% occupied, according to Mullen. Rents here also average $800 per unit. The seller is the Atlanta office of Irving, TX-based Archon Group.
The third property in the package is 261-unit Butternut Ridge in suburban Cleveland, OH, which is 95% occupied.
Mullen acknowledges to GlobeSt.com that, while all three properties have high occupancy rates in markets where apartment occupancy is soft, "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."
In a printed statement, Arthur P. Pasquarella, Berwind's chief operating officer, says the capital for these acquisitions is from BPG Investment Partnership V.
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