A month ago, RCA came out with 1,314 units in Dallas/Fort Worth; 1,196 units Las Vegas; 250 units in Sacramento, CA; and 191 units in Biloxi, MS. Don Ostroff, senior director of the Cushman & Wakefield Multi-Housing Group, tells GlobeSt.com that RCA planned a two-phase exit play from the onset of the decision to sell.
"RCA has held many of these assets for a long time," Ostroff says, "and the owner intends to take the proceeds from the portfolio to help increase the scope and activities of his non-profit foundation." The properties were acquired over the past decade.
The 10 extra properties, primarily built in the 1970s, have occupancies ranging from 85% to 93%. Their combined debt, which must be assumed, totals $75.5 million. The 362-unit Waters on Brompton at 7315 Brompton St. and 234-unit Briargrove Court at 1202 Seagler Road are at the halfway point on 10-year Freddie Mac loans. The remaining 17 properties in the portfolio were refinanced in 2001 with Bank of America loans with terms through 2011. The entire package has an average interest rate of 7%.
"RCA is a location buyer," Ostroff says. "These are carefully chosen assets in premium submarkets including the Medical Center, Westchase, Greenspoint and Champions." Besides Ostroff, the C&W team includes Will Balthrope, also a senior director, and Susie Kakos, associate director, along with David Chuoke, senior director in Houston.
Ostroff says the initial portfolio to date has received multiple offers, some already interested in the entire package. The first offer's deadline is at the end of this month and the second shuts down a month later.
The other add-on properties are the 384-unit Royal Phoenician at 16900 Northchase Dr.; 354-unit Waters at Champions at 2431 FM 1960 West; 296-unit Regency Arms at 6363 San Felipe St.; 256-unit Waters at Kirkwood at 11710 Briar Forest Dr.; 108-unit Park Plaza at 10010 Westpark Dr.; 80-unit Braeburn Villa at 9600 Braes Bayou Dr.; and the 52-unit Parkwest Place at 10161 Westpark Dr.
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