"This is a big milestone for our company," Glen Weisberg, managing director for the Purchase, NY-based Tuckerman Group, tells GlobeSt.com. "This joint venture differs significantly from other ones that we've done because we'll have a much longer hold period and our investors are looking for more of a stable cash flow than valued added."
Tuckerman emerged as the winner for the 12-property multifamily portfolio totaling 4,034 units, beating out nearly 30 other prospective partners, Kim Callahan with the Houston-based Camden's investor relations department tells GlobeSt.com. "We identified the properties and then went through a bid process," she says. "We just felt Tuckerman was the right fit." For previous story, click here.
The property concentration has four complexes, totaling 949 units, in Las Vegas; three assets with 992 units in Phoenix; a trio with 1,226 units in Houston; and one asset each in Dallas and Orange County, CA, with 456 units and 421, respectively. The Las Vegas, Phoenix and Orange County properties are 95% occupied, on average. The Dallas and Houston components are about 90% leased. Of the 12 complexes, only two pre-date 1995.
"We believed in the collective strength of the portfolio," Weisberg says. "And, we were impressed with the quality of the Camden organization."
Camden retained a 20% stake and will be paid 3% of the JV's revenue as a property management fee, according to Callahan. She says the partnership is expected to last at least seven years, which is when the $272-million loan from Fannie Mae is due.
"We wanted to maintain ownership in these properties, but we wanted to limit our NOI exposure--specifically in Las Vegas, Houston and Dallas," Callahan says. "This partnership will help balance our geographic platform." She says there are no other JV partnerships planned, but Camden might add more properties to the newly formed pool in the future.
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