"RCA has rarely been a seller in its 30-year history, but having owned many of the properties a number of years, has decided to sell off a portion of its portfolio," Don Ostroff, senior director of the Cushman & Wakefield Multi-Housing Group, tells GlobeSt.com. Besides Ostroff, the C&W sales team includes Will Balthrope, also a senior director, and Susie Kakos, associate director.
The Houston-based RCA, led by Bernard Aptaker, has about half of its multifamily holdings on the market. The portfolio consists of three properties, totaling 1,314 units, in Dallas/Fort Worth; three complexes with 1,196 units in Las Vegas; a 250-unit development in Sacramento, CA; and a 191-unit asset in Biloxi, MS.
The assumable debt stems from refinancing packages floated in 2001 through Bank of America. The loans, maturing in April 2011, have an average interest rate of 7%, according to Ostroff. Built between 1968 and 1998, the properties' occupancies range from 90% to 95%.
Ostroff predicts the sale package--available in its entirety, groupings or individual assets--will attract significant interest. A few offers already have been placed for certain assets, but RCA has elected to wait for the offer deadline, which rolls around at the end of May. With institutional investors increasing their real estate allocations, Ostroff explains, and so much private money chasing real estate deals, the demand is intense for multifamily properties so the "best and final" is likely to drive a heated race to the finish line. He expects a contract or contracts will be completed in the first week of June and closings scheduled within 60 to 75 days.
In Dallas/Fort Worth, three properties are up for sale with a $68.7-million price tag and $53.6 million of assumable debt. The properties are the 336-unit Royal St. Moritz and 376-unit Ambassador, both in Grapevine; 272-unit Eastchase Terrace in Fort Worth; and 330-unit Waterford in Arlington.
The Las Vegas assets are tagged at $72.3 million and have a combined debt of $54 million. The holdings are the 464-unit Smoke Ranch, 288-unit Fountains at Villa Cordova and 444-unit Royal Sahara.
The Sacramento property, priced at $19 million with $11.4 million of debt, is the 250-unit Royal Riverwood apartments, just a block from the Cal State campus. The Biloxi property, with an $11-million ask and $9.4 million of debt, is the 191-unit Lexington Royal, one block from the Gulf Coast beaches.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
