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SAN FRANCISCO-Lyon Capital Management has sold 728 apartment units in the region to a fund of Invesco Real Estate for approximately $185 million, local sources tell GlobeSt.com. The deal included the 520-unit Stoneridge apartments adjacent to the Stoneridge mall in Pleasanton and the 208-unit Kimberly Woods property on Willowleaf Drive in San Jose.
Both properties were built by Lyon in the late 1980s and are well leased. The purchase price equates to a capitalization rate in the low 4% range based on in-place net income. Invesco Real Estate plans to raise the cap rate by renovating the properties and pushing rents, according to local sources.
The Kimberly Woods sale closed just before Christmas and the Stoneridge deal a couple of weeks earlier. The sales were brokered by Curtis Gardner of Arroyo & Coates. He could not be reached Wednesday for comment.
Stoneridge, located at 6250 Stoneridge Mall Rd., has two pools, five spas, racquetball and tennis courts, steam rooms and a fitness center. Kimberly Woods, located at 935 Willowleaf Dr., is a gated community with two pools, a tennis court and a fitness center.
Lyon Capital Management is a Pittsford, NY-based investment advisor. Invesco Real Estate, headquartered in Dallas, manages approximately $26.7 billion in direct real estate assets and publicly-traded real estate securities (primarily equity REITs).
Lyon also recently sold its 400-unit RiverBend apartment complex in Yorba Linda to the Archstone-Smith apartment REIT for $98.8 million. A Lyon Capital Management executive could not be reached Wednesday evening for comment. A local source says the company is simply capitalizing on the low cap rate environment.
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