Twelve of the 14 contracts, all separate owners, were inked in recent weeks, with the others crossing the finish line about 45 days ago, according to Christy Freeland, CEO of Dallas-based Riverstone Residential Group. She describes the mix as "bread-and-butter properties" to GlobeSt.com, adding that the management company is on track to ink $200 million of contracts this year.
"There is a lot of value add going on out there," Freeland says. Riverstone's chief selling point is it drives upside through its purchasing might from 192,000 apartments in 32 states. "The upside is not just from a rent standpoint. We have purchasing power to deliver expense savings," she stresses.
However, Freeland says the portfolio additions are located in markets where rents are projected to tick up 4% to 6% in the coming year. The 14 properties have in-place rents ranging from $600 to $1,500 per month for one, two and three-bedroom units.
Freeland says Riverstone's three divisions in the US secured the new pacts at the local levels by courting institutional and private owners. She says Riverstone will gain about 80 associates from the management transition.
The heaviest concentration of new contracts is California: the 295-unit Parc Chateaux at 24970 Constitution Ave. in Stevenson Ranch; 124-unit Solano Apartments at 1050 Crestview Dr. and 88-unit Aviana Apartments at 2101 California St., both in Mountain View; and 120-unit Pacific Point at 13811 Shoemaker Ave. in Norwalk.
In Boise, ID, Riverstone picked up the 59-unit Spring Creek and 16-unit Spring Creek II at 685 E. Holly St. Two Texas properties also rolled: the 379-unit Alexan Parkway at 6653 McKinney Ranch Pkwy. in McKinney, and 275-unit Northcastle Apartments at 8100 N. Mopac Expwy. in Austin. And two more were transitioned in the Seattle area: the 20-unit Carbon 56 at 2015 Terry Ave. and 20-unit Urbane at 8296 169th Ave.
Riverstone's new pacts also include the 351-unit Stonewater Apartments at 1200 Wisdom Dr. in Cary, NC; 289-unit Houston Levee at 9940 Paddle Wheel Dr. in Cordova, TN; 180-unit Knoll Ridge at 207 George St. in Middleton, CT; and 156-unit Oakbrook Inn at 3242 Felina Ave. in Salem, OR.
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