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NEW YORK CITY-Stellar Management has acquired a 1,200-unit apartment portfolio for $50 million. The 12-building portfolio includes three apartment properties here, eight in Yonkers, NY and one in Scarsdale.

The locally based Stellar acquired the rental package from a private family estate. Another locally based firm, DeMarzo Realty Co., negotiated on behalf of the estate. "This was a special instance where we worked on behalf of several family members--none knowledgeable in real estate--who had inherited a large portfolio of residential properties," explains the firm's president Anne DeMarzo. She notes that working with a seller of this type requires a distinct approach. "We knew we could not simply present the portfolio to the largest group of potential buyers. Instead, we sought potential buyers that would have the patience and flexibility required to work on a complex deal with a diverse group of owners."

A DeMarzo spokesperson tells GlobeSt.com that apartments will remain rental units. According to the National Multi Housing Council's July 2005 Quarterly Survey of Apartment Market Conditions, high investor demand for apartments remains unabated. A record 41% of respondents noted higher sales volume in their markets over the past 90 days, while a 9% indicated lower volume in their markets. As a result, the Sales Volume Index rose to 66, also a record high, and the ninth straight quarter of increasing sales volume. (A score above 50 means more respondents saw improving conditions than saw worsening conditions over the past three months.)