BEVERLY HILLS, CA-Those who follow @GlobeStcom on Twitter and @GlobeStLIVE may have seen a post teasing the announcement, but GlobeSt.com has learned that Aragon Holdings has expanded into two new markets with the acquisition of three properties in Atlanta and Denver, deploying approximately half of the $52 million it raised in its recently-closed private equity fund, Aragon Multi-Family Cash Flow Fund II. The balance of the $100 million acquisition was provided by Freddie Mac.
In the Atlanta market, the company purchased Holland Park, a 496-unit property in Lawrenceville, and Azalea Springs, a 232-unit property in Marietta. The Denver purchase was Hampden Heights, a 376-unit property located just north of the Denver Tech Center. All three properties are located in areas with strong employment, according to a prepared statement.
The acquisitions increase Aragon's multifamily portfolio to more than 5,000 apartment units, all acquired in the past four years. During 2012, the company purchased more than $200 million of multifamily assets in six states.
Equity for the three transactions was provided by Aragon Multi-Family Cash Flow Fund II, a private equity fund formed to facilitate the company's acquisition activity and to produce monthly cash flow distributions to investors, according to a prepared statement. Like its predecessor Aragon Multi-Family Cash Flow Fund I, the latest fund targets 10% annual, tax deferred, cash-on-cash returns, paid monthly to investors.
In Denver, Hampden Heights Apartments is located in the southeast submarket, less than 10 miles from the city's center. The local area's average income is 20% above that of metropolitan Denver, and its population is forecasted to grow by over 10% in the next five years, according to a release. In Atlanta, the Holland Park and Azalea Springs apartments are both close to major employment centers. “The metropolitan area's employment levels have returned to 95% of pre-recession levels. The job base expanded by 2.6% last year, and is forecasted to outperform most other cities in the coming years,” says the release.
Larry Clark, president of Aragon Holdings, noted that Atlanta and Denver are new markets for the company, “but they fit well with Aragon's model of acquiring properties in areas with strong job markets and robust demand for multifamily housing.” He also says the firm is “actively seeking to purchase additional multifamily properties across the nation in cities that have positive job and population growth.”
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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.
