Author Archives: ipgocorp

Pure Multi-Family REIT Acquires 288-Unit Apartment Community in Dallas for $40.0 Million

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DALLAS, TX – Pure Multi-Family REIT announced the successful closing of the previously announced 288 unit multi-family apartment community, located in the Allen sub-market of Dallas, Texas, for a buy price of $40.0 million.

Lansbrook was constructed in 2002 and consists of 288 residential units averaging 961 square feet. It has value-add potential and is located in the highly desirable residential area of Allen, Texas, one of the fastest growing cities in Texas.

According to the Allen Economic Development Corporation, Allen, Texas is the 16th fastest growing city in the U.S. and the 2nd fastest growing city in the Dallas Fort Worth Metro Area. The median household income in Allen is $105,679 (75% greater than Dallas Fort Worth’s median income).

Lansbrook is situated in the highly acclaimed Allen Independent School District, and easily accessible as it is positioned along Benton Drive just a few minutes from the Central Expressway (US Route 75) and the US Route 121 interchange, one of the most heavily travelled interchanges in Far North Dallas.

Pure Multi-Family funded the buy of Lansbrook with proceeds from the previously announced profitable sale of Fairways at Prestonwood, which closed on November 17, 2016, and new first mortgage financing in the amount of $16.5 million.

The first mortgage financing bears a fixed interest rate of 3.27% per annum for a term of 5 years. The buy price represents a stabilized going-in capitalization rate of 5.3%.

Steve Evans, CEO, said, “The Lansbrook acquisition demonstrates our ability to do once again on our value-add strategy while achieving solid cash flow in a highly desirable market.”

Upon completion of the acquisition of the Lansbrook, Pure Multi-Family’s portfolio consists of 17 multi-family properties comprising an aggregate of 5,793 residential units, situated on 310 acres of land.

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Bond markets set for a taste of the 60s as inflation picks up

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(RECAP: Paul Schmelzing, a visiting scholar at the Bank of England from Harvard University, has studied 800 years of bond markets history and says the most relevant parallel with today’s environment is with the late 1960s under U.S. President Richard Nixon. The U.S. was emerging from a prolonged period of low inflation, the jobs market was tightening and a new pro-business president had raised expectations of fiscal expansion. It was a bruising time for bond investors. U.S. bonds lost 36 percent in real price terms between 1965 and 1970, while annual consumer price inflation more than tripled in the period, to 5.9 percent from 1.6 percent. As the world’s largest bond market, what happens to U.S. Treasuries usually sets the tone for bonds across the world. Based on historical standards, bonds could be set for double-digit losses, he said.)

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H.I.G. Realty Partners Acquires 322-Unit Windsor House Apartments in San Antonio, Texas

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SAN ANTONIO, TX – H.I.G. Capital, a leading global private equity and alternative asset investment firm with $21 billion of equity capital under management, announced that its affiliate, H.I.G. Realty Partners, has bought Windsor House Apartments, a 322-unit apartment complex located in San Antonio, TX.

Ira Weidhorn, Managing Director of H.I.G. Realty, commented, “Windsor House presents an opportunity to make value through an extensive upgrade program in a market that has seen a considerable increase in demand in recent years.”

Built in 1997, Windsor House Apartments is located in Northern San Antonio, in close proximity to several major employment drivers including the South Texas Medical Center, a 900 acre medical complex that is home to 10 major hospitals and nearly 80 clinics.

H.I.G. Realty Partners is the real estate platform of H.I.G., managing $1.6 billion in capital commitments focused on small-to-mid cap real estate assets across property types located in the U.S. and Europe.

H.I.G. Realty Partners targets the acquisition of value-add investments, employing a hands-on, operationally focused approach that seeks to generate substantial cash flow and asset appreciation through rehabilitating, redeveloping, repositioning and rebranding assets that have been capital starved and/or poorly managed.

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