Toro Real Estate acquired the 121-unit vacant property in Columbus, OH.
COLUMBUS, OH—New York-based real estate investment firm Toro Real Estate Partners reports it has closed its first acquisition in a qualified federal opportunity zone here.
The property in Columbus consists of 121 units that are completely vacant and have significant deferred maintenance attached to it. With the addition of the Columbus property, the deal brings the Jericho, NY-based Toro's total units acquired to approximately 2,500 units, with an additional 832 units currently under contract. No financial terms of the Columbus property purchase were released.
John Cohen, a Toro co-founders, said, “We have been closely following the developing possibilities that surround opportunity zones and have been eager, and yet patient, to find the perfect first deal for us to undertake. We feel that there is going to be an incredible opportunity in this space over the next three to four years and we are incredibly happy that we were able to secure this deal before the end of the 2018 calendar year.”
Toro says the total capitalization in connection with the deal is well below replacement cost and an identical building sold for a significant premium within the last six months. Toro Real Estate Partners is a private real estate investment firm that is focused on purchasing apartment properties in the Southeast and Midwest.
“We've really stress tested this deal because of the newness of the rules and regulations surrounding the opportunity zones,” says Don DiRenzo, Toro co-founder. “We wanted to be ultra-comfortable with this deal should we be at point in the cycle where things might start to go in a different direction. We feel that we can spend quality capital to reposition this asset, and it is going to be an incredible vehicle to hold for 10+ years and take full advantage of all the benefits opportunity zones have to offer our investors.”
Toro's Cohen adds that the firm is exploring other investments in opportunity zones and expects to have a comprehensive plan in place for the first quarter of 2019.
Toro acquired the Columbus property in an off-market transaction. The firm says the purchase was based on its previous experience in the space and their connections within the market and the region. The property represents Toro's 14th purchase since 2015.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
