ATLANTIC CITY-Tryko Partners LLC has acquired the Barclay Arms, an affordable housing development at 814 Virginia Ave. here, from Max Gurwicz Enterprises for $5 million in an off-market sale, the company says.
The 75-unit deal caps a 12-month period that saw the firm’s multifamily portfolio nearly double, says Uri Kahanow, Tryko’s director of acquisitions. The Brick, NJ-based firm has added more than 1,800 residential units and 200 nursing home beds to its portfolio, with another 680 housing units under contract to close during the first quarter of 2012.
“And we’re definitely hoping that 2012 will be as active a year or better,” Kahanow tells GlobeSt.com.
With Barclay Arms’ occupancy at 99%, the cap rate was 9%. And Tryko is looking to reduce costs of management. “This property was third-party managed,” Kahanow says. “We manage everything we own.”
Because Tryko owns the similarly sized Magellen Manor across the street, economies of scale can be put into place. “Both these properties have HAP contracts on them,” Kahanow says. “[The units] are going to families that need assistance.”
Tryko is going through each unit to dtermine what if any renovations or repairs are needed. And Kahanow will be working with utilities to reduce costs, and is hoping to put in new heating systems to increase efficiency.
Kahanow says that he expects that acquisition activity will continue in 2012, particularly as the pool of potential investors grows.
“Both lenders and investors have an appreciation for both affordable and conventional housing,” says Chad Buchanan, Tryko VP-investments. “We’ve been fortunate to continue to grow our lender relationship network.”
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