KBS Taps HFF to Market 7-State Portfolio

KBS Legacy acquired the 301-unit Wesley Village complex in Charlotte, NC in November 2012.

CHICAGO—KBS Capital Advisers LLC has tapped HFF to market an 11-property, seven-state apartment portfolio on behalf of KBS Legacy Partners Apartment REIT. The 3,039-unit portfolio represents the entirety of KBS Legacy Partners, a non-traded public REIT sponsored by KBS Capital and affiliates of Legacy Partners Residential Realty. An HFF spokeswoman tells GlobeSt.com that the seller has a target of about $500 million for the entire portfolio, which may also be acquired as a subset of pooled assets or as individual properties. CoStar Group reported that the offering is part of a broader plan by KBS Capital Markets Group to liquidate holdings in some of its REITs. The portfolio consists of garden and mid-rise apartments. Most of the properties were built between 2002 and 2010; Real Capital Analytics data indicate that the assets were acquired in 11 individual transactions between 2012 and 2014 at a combined cost of about $396 million. Included in the portfolio are Watertower Apartments in Eden Prairie, MN; Poplar Creek in Schaumburg, IL; Legacy at Martin’s Point in Lombard, IL; Lofts at the Highlands in St. Louis; Legacy at Valley Ranch in Irving, TX; Crystal Park at Waterford in Frederick, MD; the Residence at Waterstone in Pikesville, MD; Legacy Grand at Concord in Concord, NC; Wesley Village in Charlotte, NC; Legacy Crescent Park in Greer, SC; and Millennium Apartment Homes in Greenville, SC. Average occupancy is greater than 95%. The HFF investment sales team representing the seller is led by executive managing director Matthew Lawton, along with local HFF teams in the respective markets. “This well-balanced, geographically diverse portfolio presents investors with a unique opportunity to not only acquire institutional high-quality assets in key markets, but, if purchased in its entirety, also presents the opportunity to acquire the REIT vehicle itself in its entirety providing additional flexibility to the potential buyer’s investment platform,” Lawton says.