David St. Pierre
Cleveland-based Legacy Capital Partners began 2020 with robust multifamily disposition activity after executing the successful exit of five assets totaling 1,170 units. The properties are The Hue in Savannah, GA, Trails at Cahaba River in Birmingham, AL, two properties in Metairie, LA, and Park West Apartments in Mobile, AL. The sales totaled $140 million.
Although all of these deals were in the Southeast, David St. Pierre, Legacy Capital Partners co-founder and managing director, tells GlobeSt.com that Legacy does not target geographies specifically in the region, but rather looks at opportunities where its operating partners have areas of geographic expertise. However, he says given the strength of Legacy's operating partners in the region it expects to remain active throughout the Southeast.
"The market has changed significantly with the current coronavirus situation, and it is difficult to comment on overall availability at this time," St. Pierre says. "Legacy is always actively looking at both new operating partners and new potential acquisitions, and seeks to remain fluid in a rapidly changing environment."
The Hue, a 446-bed (149-unit) student housing project located in Savannah, closed late December 2019. The asset is the only purpose-built student housing project located within the historic district of Savannah and serves the Savannah College of Art & Design (SCAD). Legacy, with its Atlanta-based joint venture partner, invested in the project in April 2016.
In September 2016, Legacy, with its Philadelphia-based joint venture partner, invested in Trails at Cahaba River, a 400-unit apartment complex located in Birmingham. During its hold period, the joint venture completed the interior renovation of 348 units along with the gut rehab of the Leasing Office/Clubhouse and exterior renovations. The asset sold in January 2020.
Legacy, with another one of its Atlanta-based joint venture partners, invested in a four-property, 557-unit portfolio in Metairie, in February 2018. After completing a significant amount of the planned renovation program, the joint venture took advantage of strong market demand and executed on the sale of two of the assets on February 27, 2020. The sale of the smallest asset in the portfolio is under contract and expected to sell in the 2nd quarter. The joint venture will retain ownership of the most desirable asset in the portfolio, The Local on Severn and continue its renovation/repositioning program in order to further enhance its value for a future exit.
The most recent of Legacy's dispositions was the sale of Park West Apartments, a 278-unit apartment complex in Mobile. Legacy originally invested in the project in September 2015 and bought out its joint venture partner in June 2018. The sale closed on March 17, 2020.
St. Pierre says Legacy has been in constant communications with its operating partners on best ways to manage both its existing portfolio as well as reassessments and flexibility on deals in the pipeline.
"Currently, our team is working from home and not traveling, but with dry powder in our fund, looking opportunistically at new acquisitions as more information is known and conditions begin to stabilize," he says.
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