LONG BEACH, CA-Philadelphia-based BPG Properties Ltd., a private equity fund managers, has sold the Crossings at the Bay, a 237-unit multifamily here for $34.5 million to Phoenix Realty Group. The multifamily community contains a mixture of one and two bedroom, garden style apartments and is located within two miles of freeways 405, 22 and 605 and one mile of California State University at Long Beach.
“The current capital market environment and heightened demand for professionally owned and operated multifamily properties in Los Angeles County presented us with a natural opportunity to sell The Crossing at the Bay at favorable terms for our investors,” says Greg Curci, acquisition manager at BPG who was responsible for overseeing the disposition.
Curci tells GlobeSt.com that BPG received 20 “qualified offers from a variety of investor types including REITS, pension fund advisors, private firms, and student housing operators. In addition, he says that “pricing was consistent with today’s low cap rate environment for well-located properties in L.A. county.”
At the time of the sale, the community was 92% leased. The seller was represented in the transaction by Dean Zander and Vince Norris of Hendericks & Partners.
The marketing effort promoted the property as an “excellent value-add opportunity, which in turn was echoed by the strong investor interest,” according to Hendricks & Partners. Zander and Norris conducted 32 property tours, they tell GlobeSt.com. “The prospective investors were all attracted to the phenomenal location, convenience to UC Long Beach and the “Traffic Circle”, as well as quick access to all the exciting attractions and job-generators that make Long Beach so desirable,” says Zander.
Norris continues, “Crossings is a significant asset; nothing this size has traded in the city for the last eight years, so it’s a great opportunity for the Buyer to make a big statement in Long Beach.”
The Crossings at the Bay features 1-bedroom and 2-bedroom apartments and townhomes with ceiling fans, air conditioning, dishwashers, refrigerators and private balconies. The gated community includes several on-site amenities such as a clubhouse, business center, resident lounge, three pools, fitness center, tanning bed and on-site management and maintenance.
Brian Eisendrath of CBRE arranged the attractive fixed rate interest-only Freddie Mac debt.
BPG acquired the Crossings at the Bay in 2003 as part of an $82 million acquisition of three properties located in California, Illinois and Alabama. The transaction was made on behalf of BPG Investment Partnership Fund VI LP, a $384-million private equity fund.
As GlobeSt.com previously reported, BPG decided to sell the asset with an asking price of $40 million, “because it was approaching the end of its hold period.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
