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GE Makes Play for Investments Group

In an all-cash deal, GE Real Estate picked up a portfolio of apartment communities in Dallas, Atlanta and Austin, TX for $256 million. It's the third portfolio acquisition the firm has made on behalf of the direct investments group of its North America equity division.

By Sule Aygoren Carranza | Updated on April 11, 2007

Stamford, CT —In an all-cash deal, GE Real Estate picked up a portfolio of apartment communities in Dallas, Atlanta and Austin, TX for $256 million. This marks the third portfolio acquisition the locally based firm has made on behalf of the direct investments group of its North America equity division. The package includes all of the stabilized assets of FirstWorthing Corp ., including 10 properties totaling 3,532 units and 3.2 million sf.

Greg Bates, managing director and head of the direct investments group, tells Multi Housing Forum that GE initially started talks with the sellers, FirstWorthing and Principal Financial Corp., about a potential opportunity to do a deal. A few months ago, the sellers tapped Malcolm McComb, vice chairman of CB Richard Ellis‘ Atlanta office, to market their student living and conventional holdings. After evaluating both opportunities, GE decided to pursue the conventional assets, which comprised about one-third of the overall portfolio.

Six of the assets are in Dallas, three are in the Greater Atlanta market and one is in Austin. They range from brand-new A product, which primarily includes FirstWorthing’s Cityville assets that are high-quality yet affordable properties with many amenities built on the edge of prime locations that typically cater to young professionals, to C-quality product. “We actually like that diversity, as well as the geographic diversity, of the portfolio,” Bates says.

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