(RECAP: Federal Reserve policymakers chose in June that interest rate hikes should stay on hold until they have a handle on the consequences of Britain’s vote on EU membership, according to the minutes from the Fed’s June policy meeting released on Wednesday. Policymakers also cited a severe slowdown in hiring by U.S. employers as a reason for leaving interest rates steady last month, the minutes showed.)
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ASHBURN, VA – Cortland Partners announced that it has closed on a deal to buy Stoneridge Apartments, a 630-unit apartment community located in Ashburn, VA in Loudoun County. The transaction signals the multifamily investment and management firm’s first foray into the Washington D.C. market as part of an aggressive growth strategy spanning the Southeast and beyond.
Stoneridge presents a unique opportunity for Cortland to expand its portfolio while also entering a new core market that has demonstrated consistent rent growth. Stoneridge, built in 2001, will undergo extensive interior and exterior renovations and upgrades as part of Cortland’s asset repositioning strategy.
Stoneridge is strategically located within a 30-minute commute to Washington D.C. and is less than a mile from Loudoun County’s newest mixed-use destination, “One Loudoun,” which offers a multitude of critically acclaimed dining options, shops and entertainment venues. Upon completion of the renovation, the community will offer spacious 1, 2 and 3-bedroom luxury apartments boasting premium finishes and quality amenities catering to all ages, including two full-size swimming pools, a resident clubhouse and fitness center, communal lounges and grilling areas, and outdoor children’s playgrounds. Renovations are slated to start in November 2016 and continue through 2018.
“This recent acquisition supports our ongoing strategy of acquiring and repositioning end-cycle properties and transforming them into communities that offer residents a superior living experience at a more affordable price,” said Steven DeFrancis, Cortland Partners Founder and CEO. “We identified Stoneridge as an brilliant opportunity to take a well-located, institutional quality asset and add value through high-quality renovations and a strategic repositioning.”
Headquartered in Atlanta with properties in Georgia, Florida, North Carolina, Colorado, Louisiana, Texas, Florida and Ohio, Cortland Partners was recently named to the National Multifamily Housing Council’s list of the “Top 50 Largest Apartment Owners,” and for the first time, the “Top 50 Largest Apartment Managers.”
“We’ll continue to explore additional opportunities to buy quality, like-kind multifamily assets in the Washington D.C. metro area and bolster our portfolio in what’s truly an exciting new market,” said DeFrancis.
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PITTSBURGH, PA – Preferred Apartment Communities announced that it converted a part of the outstanding principal balance of its real estate loan investment into an approximate 96% equity ownership interest in a joint venture that owns a 272-unit apartment community in Pittsburgh, Pennsylvania named City Vista.
PAC’s 96% equity ownership interest is held by one of its indirect, wholly-owned subsidiaries. The developers will retain the remaining equity ownership interest in the joint venture, and PAC will manage the business and operations of City Vista.
“We are excited about City Vista and the Pittsburgh market. This is a fantastic asset with brilliant long-term potential value,” said Leonard A. Silverstein, PAC’s President and Chief Operating Officer.
In connection with the conversion, City Vista was refinanced, utilizing a mortgage loan from Jones Lang LaSalle Multifamily for approximately $36.0 million and has a fixed interest rate of 3.68% per annum with a ten-year term. PAC received proceeds from the refinancing of approximately $6.6 million to pay down the remaining outstanding principal and interest balances of its real estate loan investment.
Jones Lang LaSalle Multifamily intends to assign the loan to Freddie Mac within 60 days.
Preferred Apartment Communities was formed primarily to buy and operate multifamily properties in select targeted markets throughout the United States. As part of its business strategy, it enters into forward buy contracts or buy options for to-be-built multifamily communities and makes mezzanine loans, provide deposit arrangements, or provide performance assurances, as may be necessary or appropriate, in connection with the development of multifamily communities and other properties.
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