(To read more on the multifamily market, click here.)
CHICAGO-The Laramar Group LLC, owner and manager of more than 19,000 units nationwide, has put on the market 4,541 multifamily units, or approximately 24% of the firm's complete asset portfolio. Matthew Lawton, senior managing director with Holliday Fenoglio Fowler LP, tells GlobeSt.com that the portfolio, with properties in Illinois, Missouri, Minnesota, Pennsylvania and Texas, is expected to fetch more than $350 million.
"Laramar is a larger owner, and they are acquiring other assets on an ongoing basis," Lawton says. "They've been in these assets for a while. They've added value, and for some properties, there is still some value to add; they're leaving a little something on the table for the next buyer."
The portfolio includes the 320-unit Hunter's Glen Apartments in Aurora, IL; and Lynnewood Gardens Apartments in Elkins Park, PA, which offers 1,798-units on 122 acres. Three Minneapolis properties include Town Centre at Lexington in Eagan with 248 units; the Greens at Edinburgh in Brooklyn Park, a 198-unit, four-story building; and Plymouth Square at 37th in Plymouth with 160 units.
In Missouri, properties total 1,081 units and include Quail Run in Kansas City with 690 units; Kingsridge Apartment in Blue Springs with 140 units; and Sandalwood Creek Apartments, a 251-unit community in St. Charles with five two-story buildings and 13 three-story buildings. The final two properties, located in Texas, include Sheffield Square, a 400-unit community located in Grand Prairie, and Villas at Vista Ridge in Lewisville, a 323-unit luxury apartment community.
The Laramar portfolio is currently financed with a $250-million Fannie Mae loan and is being offered to prospective purchasers unencumbered or along with the existing facility, Lawton says. The portfolio can be purchased as a whole, in portions or in piecemeal.
Lawton tells GlobeSt.com that there has already been much interest in the portfolio from institutional investors, pension funds, TICs and private capital markets. The call for offer is expected mid-July. Holliday Fenoglio Fowler LP is facilitating the sale of the portfolio. Lawton will lead the HFF team along with directors Dave Nachison and Marty O'Connell.
Lawton says that the recent trend in condo conversions and developments has led to a diminished number of rental offerings. For that reason, Laramar is selling its rental portfolio at a pivotal moment in the leasing market.
"There is a depleting rental pool with all the recent condo conversions," Lawton tells GlobeSt.com. "Because of this, we think the rental market is getting set up strongly from a supply and demand standpoint--especially if we see further job growth."
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