LAFAYETTE, LA-Realco Capital Partners LLC has made its first acquisition in Louisiana, paying $8.6 million to acquire University Place Apartments.
The New York City-based investor paid all cash for the 193-unit, class C apartment complex, which is situated directly across the street from the University of Louisiana – Lafayette campus. The seller was UPA LLC, a local investment firm.
Realco Capital was one of 10 firms that made an offer for University Place Apartments, according to J. Ryan Lang, a commercial sales executive in Stirling Properties’ Baton Rouge office who specializes in multifamily properties. He marketed the 31-year-old property on behalf of the seller, while Chris Epp with ARA’s Austin office represented the buyer.
“Potential buyers were attracted the property’s location and value-added opportunity,” Lang tells GlobeSt.com, pointing out that the University of Louisiana – Lafayette is the second largest university in Louisiana with 16,500 total students and more than 2,100 employees. “This is a unique property because this is one of the few apartment complexes located this close to campus that is not owned by the university.”
Lang says Realco plans an extensive renovation of the property, which is about 96% occupied. The new owner will spend several million dollars to upgrade the property’s exterior, as well as interior units, which include both one and two-bedrooms.
“The property needs some work, and a complete rehab will allow the new owner to push rents significantly,” Lang says. Currently, monthly rents range from $550 to $650.
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