(Crystal Proenza is associate editor of Real EstateFlorida.)
DAVIE, FL-Locally based New Dawn Cos. LLC has acquired a multifamily portfolio from Chicago-based Equity Residential consisting of 1,428 apartments in four developments in Raleigh, NC and Nashville, TN. The purchase was funded through a $96.7 million loan secured by Charlotte, NC-based Grandbridge Real Estate Capital.
"This acquisition allows New Dawn to apply their hands-on experience to renovate and upgrade the properties to compete against other first-class projects," Al Rex, Grandbridge senior VP, tells GlobeSt.com. Grandbridge funded the four apartment communities through Freddie Mac's Acquisition Upgrade Mortgage product, designed specifically for multifamily properties that are planning renovations after an acquisition.
"All of the communities will receive enhanced/updated amenities, landscaping and improvements to the apartment homes," Todd Olive, executive VP of New Dawn, tells GlobeSt.com. "The improvements will vary a bit from community to community, but all will have new kitchen flooring, carpet, appliances and kitchen cabinet work involved."
The largest loan of the deal, $45 million for the 598-unit Lexington Apartments in Nashville, was secured in only 48 hours, boasts Grandbridge, and has a seven-year term, three years of interest-only and a 30-year amortization. The remaining three developments in the portfolio are all located in Raleigh, NC. Sailboat Apartments is a 192-unit development receiving $9.8 million, Duraleigh Woods Apartments is a 362-unit development funded at $23.2 million and Bridgeport Apartments, a 276-unit garden style apartment complex, was funded at $18.6 million. Rental rates for all four communities ranges from $900 to $1,300 per month, and include amenities such as fitness centers, hiking trails, pools and tennis courts.
"We believe adding these assets, located in superior markets, directly connects with our company's business goals," says Olive, whose integrated real estate company is aggressively seeking multifamily acquisitions. New Dawn specializes in development, management, acquisition and disposition of multifamily properties in the Southeast.
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