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NEW YORK CITY-In a move to avoid competition from condo converters, Somerset Partners aims to acquire multifamily properties in secondary and tertiary markets in the Southeast and Southwest. With that strategy in mind, the locally based firm purchased the Civic Center Apartments in Southhaven, MS. The 392-unit, class A multifamily property is located in a suburb of Memphis. In addition, Somerset is under contract to acquire the Phase II of Civic Center next year.Phase I of the property was completed in 2002 and is 95% occupied, Philip Welch, managing partner of Somerset Partners, tells GlobeSt.com. Phase II was completed in December and lease-up has already begun, standing at approximately 60% now, he adds. Welch declined to disclose the price Somerset paid the owner, a private investor.The buy furthers the firm's strategy to acquire multifamily properties in the Southeast and Southwest, according to Marshall G. Allan, managing partner. "Most of the Northeast multifamily stock is susceptible to pricing based upon conversion," Allan tells GlobeSt.com. "We don't buy in markets where we would be competing with converters."Allan explains that the firm can also buy at better cap rates in secondary and tertiary markets, like Tulsa, OK and Little Rock, AR, than in more populated areas. "There is less competition in these markets, particularly in 2002 when we defined our strategy. The competition is growing now but it is still considerably less than in places like Atlanta."He adds Somerset looks for strong income fundamentals and solid assets. "We bought Civic Center because Northwest Mississippi has become a high-growth suburb of Memphis."As 2006 enters its second month, Somerset looks to top last year's total acquisition of commercial and residential properties. "In 2006 we are targeting about $1 billion in growth in our portfolio," Allan tells GlobeSt.com. "2005 was a very good year, we did about $800,000 of acquisitions, so we are looking to grow that by 20%."In addition to multifamily, Somerset is actively looking at class A office properties here and in Boston and Washington, DC. The firm will also investigate selling some assets, he adds.