Search
 

Former United Dominion Execs Form Multifamily JV

RALIEGH, NC-McCann Realty forms a joint venture with Silver Capital LLC that expects to acquire more than $100 million worth of Mid-Atlantic and Southeast real estate over the next 24 months. The first acquisition is Hunter's Glen, a 180-unit garden-style property here that it has acquired for $9.5 million.

By Brian K. Miller | Updated on May 12, 2005

RALEIGH, NC-A young apartment investment company run by former United Dominion Realty executives has closed on the first of several multifamily properties it expects to purchase in partnership with Silver Capital LLC. The Silver-McCann Apartment Group LP plans to acquire $100 million worth of apartment properties in the Mid-Atlantic and Southeastern US over the next two years.The JV’s first acquisition was Hunter’s Glen Apartments here, a 180-unit garden-style development near North Carolina State University for which it paid $9.5 million. The acquisition was funded in part by a 10-year Fannie Mae fixed-rate loan with a rate of 5.495% originated by Deutsche Bank Berkshire Mortgage Inc. RAM Partners LLC will manage the asset.Silver Capital is a division of Silver Cos., a master developer of large commercial and residential land tracts and a diversified real estate investment firm. Formed in late 2004, Richmond, VA-based McCann Realty includes John McCann, the former CEO of United Dominion Realty Trust who remained on the board until last May, and United Dominion’s former acquisitions director Fleet Wallace. Wallace tells GlobeSt.com that Silver Capital is the money partner and McCann Realty is the expertise partner in the JV. The JV’s first acquisition, Hunter’s Glen, was an opportunity in the Raleigh apartment market “at a time when economic occupancies appear to have bottomed and apartment fundamentals are improving,” McCann says. “We’ don’t have a defined end game yet, other than making money.”Acquisitions generally will include stabilized assets where the company thinks it can add value without major renovations. “We’re not looking for the big value-add deals,” Wallace says. “But at the same time we will be opportunistic.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 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.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.