Mandalay Villas Apartments
McDonough, Ga.—Panther Properties Investment LLC has acquired the Mandalay Villas Apartments, a 300-unit property on 30 acres located in McDonough, Ga. The asset was purchased for $28.8 million from the original developer, Davis Development. Cushman & Wakefield’s Apartment Brokerage Services represented the seller. Panther Properties secured a bridge loan through Wells Fargo for the acquisition and is working on securing a permanent FHA 223f loan.
“The Mandalay Villas acquisition will make an excellent addition to our growing Southeastern United States portfolio,” says David Masse, co-founder of Panther Properties. “Our platform has led to four successful acquisitions since January 2010 and we plan to continue adding quality Class A multifamily assets.”
Developed in 2008, Mandalay Villas features one-, two- and three-bedroom luxury apartments. Amenities include a fitness center, attached garages, resort style pool and a media center. Panther plans to make several upgrades to the property including the pool area, common areas and signage. Panther also plans to add a dog park, outdoor sports court and additional fencing that will make Mandalay Villas a fully gated community.
Behringer Harvard lands two Georgia student housing communities
Athens, Ga.—Behringer Harvard has acquired two student housing communities that are both less than two miles from the University of Georgia campus in Athens. The properties total 1,128 beds.
“This portfolio presented an attractive opportunity to acquire, at well below replacement cost, two fully stabilized apartment communities with strong historic occupancy levels and institutional ownership,” says Mr. Samuel Gillespie, chief operating officer of Behringer Harvard Opportunity REIT II Inc. “To accelerate rent growth at these already desirable properties, we intend to rebrand and reposition them through a program of approximately $2.1 million in capital improvements including upgraded appliances, finishes and technology.”
The larger of the two properties, River Club Apartments, was built in 1996 on 93-acres. It features 226 units with 792 beds located in 17 two- and three-story garden style apartment buildings. The second property, River Walk Townhomes, was built in 1998 on a 32-acre site. It features 100 units with 336 beds situated in 20 two-story townhouse-style buildings.
Both communities offer amenities including a gym, free tanning salon, laundry in each unit, computer center, basketball court, tennis court, sand volleyball court, swimming pool, car wash station and barbecue grills.
Alliance Residential grabs REO asset in Las Vegas
Las Vegas—Alliance Residential Company has acquired The Pueblos, an unfinished 152-unit Class A condominium community in north Las Vegas. The firm plans to complete the remaining buildings by early 2012.
Construction stopped in 2008 due to the collapse of the condominium market. In 2010, the original lending institution was seized by the FDIC and The Pueblos was foreclosed. Five buildings totaling 40 units were completed before the seizure. Alliance plans to complete the 112 unfinished units and reposition the asset as a best-in-market rental project. The community will be renamed Broadstone Ravello.
“This is Alliance’s second multifamily acquisition in Las Vegas in the last six months,” says Dan McCadden, partner/managing director of development. “Alliance now owns more than 3,500 units in the Las Vegas Valley, and will continue to pursue both land and quality assets that fit our investment strategy.”
When completed, the property will consist of 19 two-story, wood-framed buildings designed as “Big House” architecture by Humphreys and Partners. The apartment homes will offer large floor plans averaging 1,240 square feet. Total capitalization upon completion will be bellow $14 million.