"It's an indication that things are beginning to capitulate," Marc Robinson, managing director of Southeast Apartment Partners, tells GlobeSt.com. As sellers face increasing pressure by banks and the continuing lack of capital to put their properties on the market, able buyers are springing off the sidelines to make legitimate offers with quick closing dates.
"The delta between buyer and seller is beginning to narrow somewhat," Robinson says. "The bid-ask spread that has been a part of the market over the past year is shrinking."
GlobeSt.com previously reported the $3.8-million all-cash sale of Palisades Apartments in Jacksonville, FL. The 242-unit complex closed within a week at such a low price, less than $16,000 per unit, that new owner Bridge Partners plans to put another $2 million into renovations, according to Brian Moulder of SAP's Jacksonville office.
Also during the past month, Southeast Apartment Partners brokered the sale of the 294-unit Ansley Village in Macon, GA for $16.5 million, or $56,000 per unit. A joint venture between Memphis-based Mid-America Apartment Communities Inc. and Dallas-based Thackeray Partners purchased the asset from Regions Bank, which disposed of the asset on behalf of now-defunct Opus South Corp. Robert Stickel of SAP's Atlanta office brokered the deal.
Two $8.5-million transactions also closed last month, with the 354-unit Foxfire apartments in Durham, NC selling for $24,000 per unit to Boston-based VTT Properties by Atlanta-based Lane Co., and the 152-unit Summerchase apartments in Prattville, AL selling for $56,000 per unit to Hinton Properties and Engel Realty, both of Birmingham, AL, by K. Wayne Rice & Associates, a San Ramon, CA-based TIC sponsor. SAP's Daniel Eller in Raleigh/Durham and Jimmy Adams in Birmingham brokered the deals, respectively.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
