Lawrence R. Gottesdiener, Northland's chairman, tells GlobeSt.com that, in turn, "We'll selectively liquidate some of our older B-quality buildings including holdings in Corpus Christi, Dallas and Tyler." One of those holdings, the 324-unit Stanford Court at 18175 Midway Rd. in Dallas, has just hit the market.
Austin again has turned into a core market for Northland, which now owns 4,500 units in the city. "We re-entered in 2005 and think the area is well-positioned for the long-term," Gottesdiener says. "It's the state capital, is an information capital and has the university." Austin particularly fits one of Northland Investments' main strategies, which is investment in information technology-growth markets.
Gottesdiener says Northland's strategy is to take advantage of current market conditions and cap rates so it can build a portfolio of class A-minus properties and strengthen its position in core markets. Many assets in Chicago-based Equity's 2,985-unit portfolio are 10 years old so renovations have been ordered. Gottesdiener says upgrades will be made to select complexes, mainly in the southwest submarket. The interior renovations are slated to immediately begin and take 18 months to complete.
Gottesdiener says Northland had 1,500 units in hand in Austin when Chicago-based Equity Residential brought its portfolio to market. He says the decision was made to jump into the chase after the portfolio was re-priced due to a couple escrow fallouts.
"We really like the city. It's projected to be a job growth leader and with its core institutions, provides a good investment underpinning," Gottesdiener points out. "We would definitely add if the right opportunity came along."
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