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TEMPLE TERRACE, FL-Trevose, PA-based Korman Residential has secured $50 million in senior financing to acquire the 776-unit River Chase Apartments. The move is a value-add opportunity on Korman's part, and the new owner plans to make improvements to the property including furnishing some units and improving operational efficiencies.
Philadelphia-based BlueStone Real Estate Capital served as advisors to Korman and its institutional equity partner in the transaction. This is second transaction completed between Korman and BlueStone.
BlueStone chairman Michael McManus tells GlobeSt.com that many of the higher quality multifamily properties in Central Florida were converted into condominiums, which restricted the supply. "Apartments in the Central Florida market are prime targets for Korman due to rent growth and supply issues," McManus tells GlobeSt.com. "It makes sense to acquire a property and fix it up rather than construct a new building."
The complex is located on 78 acres and features amenities such as two swimming pools, tennis courts and an indoor racquetball court. By adding furnished units, the complex will target business users. Korman Residential also owns multifamily properties in Philadelphia County, Montgomery County, Montgomery/Main Line and Bucks County, PA; Camden County and Burlington County, NJ; and Newark and Wilmington, DE.
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