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PRG Acquires 268-Unit Complex for $14M

LOUISVILLE, KY-The value-add play opens with a 7% cap rate for the 81%-leased River Oak complex. The buyer plans to upgrade and reposition the 18-year-old asset.

By Gina Kenny | Updated on December 13, 2007

LOUISVILLE, KY-PRG Real Estate Management Inc., based in Philadelphia, has acquired 268-unit River Oak apartment community for $14.1 million. The seller was River Oak Apartments [Kentucky] LLC of Geneva, IL.

The cap rate was 7%, says Rick L. Vidrio, associate partner with Hendricks & Partners. He says PRG received an $11.5-million Freddie Mac loan with a 10-year term and interest-only payments for three years to acquire the 2400 Mellwood Ave. complex. The financing’s fixed-rate interest is 5.85%.

The seller was “under capitalized for a number of properties” and sold the River Oak in addition to some other properties, Vidrio says. River Oak consists of 14 buildings constructed in 1989. It has one- and two-bedroom units, ranging from 460 sf to 1,017 sf and an average of 705 sf.

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