(Read more on the multifamily market.)
MONROEVILLE, PA-Abacus Capital Group LLC has acquired Eagle Ridge Apartments for $21.7 million. This is the New York City-based multifamily investment firm's first buy from Abacus Multi-Family Partners I LP, a newly closed commingled fund with up to $400 million to invest.
The seller is Sentinel Real Estate Corp., also based in New York City, which put the 12-building, 352-unit property up for sale this February. As GlobeSt.com previously reported, Sentinel had held the property since it was completed in 1989. Nick Matt, managing director, and Girard Sansosti, senior managing director of the Pittsburgh office of HHF LP marketed the property.
Benjamin Friedman, Abacus' president, tells GlobeSt.com his company will invest approximately $1 million in capital improvements to units and common areas of the complex. "We believe value can be created across the asset life cycle," he says. "The Pittsburgh market is a very stable market, which made this asset a good candidate for our new value-add fund.
"The fund will allow us to efficiently execute when we see opportunities, and we felt Eagle Ridge was an excellent opportunity," he adds. The fund's structure, he says, "allows Abacus to invest not only in more traditional value-add plays, such as physical rehabs, but also in development and pre-sale opportunities." He expects the fund to be fully committed within a year and says Abacus is looking at Phoenix and Austin, TX among other areas.
Of the property at 1500 Eagle Ridge Dr., Gregory Lyden, EVP of Abacus, says the asset "has a number of characteristics we look for: very good layouts, proximity to services, a good school system." Eagle Ridge was 98% occupied at the close of the sale. Current rental rates range from approximately $700 a month to $945 a month.
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