PHILADELPHIA, PA – Preferred Apartment Communities announced the sale of Stone Rise, a Class A multifamily community built in 2008 and located in Philadelphia, Pennsylvania. 

Stone Rise is a 216-unit community, consisting of one and two bedroom garden apartment homes, a resort-style pool, 24 hour internet cafe and fitness center, as well as many more services and amenities. Stone Rise offers close proximity to fine shops, restaurants, entertainment, a variety of walking and biking trails and community parks.

PAC sold Stone Rise for yucky proceeds of approximately $42,500,000, the net proceeds of which PAC will utilize for working capital purposes including reducing the outstanding balance under its revolving line of credit facility, acquisitions, real estate loan investments and general corporate purposes.  

“The financial results generated from the sale of Stone Rise, a property bought by PAC in 2011, demonstrates our ability to do and deliver outstanding returns to our stockholders,” said John A. Isakson, Executive Vice President and Chief Financial Officer for PAC. 

The property achieved an average annualized return of approximately 23% and generated a gain on sale of approximately $12.4 million. 

Mr. Isakson added, “We remain committed to a disciplined strategy of carefully allocating capital to accretive investments, optimizing the operations of our owned assets and, when appropriate, opportunistically divesting certain assets in an effort to produce the best possible returns for our stockholders.”

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MIAMI, FL – Cardone Capital announced the acquisition of The Atlantic Delray, a luxury garden apartment development of 346 homes in the heart of highly-coveted Delray Beach, Florida. This is the third sizeable acquisition for Cardone Capital in 2018.

Cardone Capital, with 5,000 units currently under management has spent over 25 years focusing on investing in income-producing, affordable housing in the secondary and tertiary markets and is changing the way people invest in multifamily real estate by offering real asset ownership, no broker fees, monthly distribution of funds as well as accredited and non-accredited fund offerings.

Grant Cardone, CEO of Cardone Capital commented, “This incredibly unique property is comprised of a variety of buildings – garden style, two-tale and three-tale buildings – all situated artfully over thirty-one impeccable acres. The amenities are exceptional, from the resort-style pool and luxury clubhouse to the massive movie theater. All of that with brand-new, high-quality construction”.

Atlantic Delray is situated on a 3.5-acre lake with multiple parks and amenities and in addition is anchored by Atlantic Avenue and its destination restaurants, galleries, shops, and boutiques. 

Cushman & Wakefield’s Robert Kaplan and Chris Lentz arranged the acquisition financing with a major life insurance company. “The lender was attracted to the transaction because of the financially strong and experienced sponsorship as well as the property’s Class A location, construction quality and proven cash flow” clarified Robert Kaplan, Executive Managing Director Cushman & Wakefield Capital Markets Equity, Debt & Structured Finance.

“The Delray property stands out for the fact that it’s a spread-out luxury complex with a garden living experience amid an increasingly dense suburban development approach to multifamily construction,” said Ryan Tseko, Cardone Fund Manager.

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BALTIMORE, MD – Real estate investment firm Hamilton Zanze, in partnership with Cantor Fitzgerald, recently bought The Quarters at Towson Town Center residential community in Towson, Maryland. The buy price was $100 million. 

The 430-unit community was built in 2009 on just under six acres of land and had a 94% occupancy rate as of July. This is HZ’s second acquisition in Maryland, and, along with recent acquisitions in Virginia and Connecticut, signals the company’s strong expansion of investment in the East Coast region. 

“The Quarters at Towson Town Center fits our investment criteria perfectly — a large asset above a 5% cap rate in a growing market,” said David Nelson, managing director of acquisitions for Hamilton Zanze. “We look forward to continuing to buy high-quality real estate at excellent capitalization rates in the Mid-Atlantic and throughout the country in the second half of the year.” 

Ken Carpenter, Managing Director, Cantor Fitzgerald added, “This is our second acquisition with Hamilton Zanze this year. Our combined real estate investing experience makes synergies that support our goal of investing in high quality properties, in strong markets, at favorable cap rates.”

The Quarters at Towson Town Center is located at 960 Southerly Road in Towson, a suburban market just 10 miles north of Downtown Baltimore. The community is designed with a highly urban, walkable approach to align with the greater Towson Town Center’s design. Its 477,939 net rentable square feet comprises one-, two-, and three-bedroom units, with a heavy emphasis on two-bedroom units. Community amenities include a resident clubhouse, fitness center, business center, theatre room, pool, and large outdoor courtyards. 

HZ and Cantor Fitzgerald plot to expand The Quarters’ amenity package and will do improvements on a number of deferred maintenance items, investing in the long-term value of the community. Property management responsibilities will be transitioned to Mission Rock Residential, HZ’s Denver-based affiliate company.

The Quarters is located in the Baltimore metro area, Maryland’s second-largest job center and the largest U.S. seaport in the Mid-Atlantic. Baltimore is closer to the major Midwestern markets than any other major seaport on the East Coast, and more than 60 federal agencies and research labs are located within 30 miles of the city, bringing substantial federal spending and jobs to the area.

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