BPG Closes $260M REIT Acquisition

PHILADELPHIA-Philadelphia-based BPG Properties Ltd. has closed on its previously announced acquisition of Boston Capital Real Estate Investment Trust–a $260 million, or $13.30 per share, transaction that is topped in the company’s history only by the $314 million, 22 apartment portfolio the firm acquired in eastern Pennsylvania last January .

With the BCRE transaction, BPG added 11 multifamily properties–totaling 3,098 units–located in Seattle, Portland, Salt Lake City, Dallas and Jacksonville, FL. The strong exposure to these Western submarkets, in fact, was one of the drivers behind the deal, Art Pasquarella, EVP and COO, tells GlobeSt.com. “We had been in those areas as investors in the early 1990s and then sold them. Especially for multifamily, the region is very strong with high occupancy and growth rates.”

This growth story is important to shareholders already leery of anything real estate-related, Fred Ruffy, an analyst with the investor education firm Optionetics, tells GlobeSt.com. “Although REITs have not performed well recently, with the Dow Jones REIT Fund (IYR) down 32.3% over the past year, the BCRE acquisition reflects the fact that some investors are finding value in the marketplace. The housing slump continues, but opportunities still exist in other areas, such as apartment communities” in certain regions.