BPG continues to grow multi-family portfolio with $12m FL purchase.
The 224 unit property located in Deland, FL will be owned and operated by an affiliate of BPG's multifamily operating arm, Madison Apartment Group, L.P.
The property was acquired subject to the assumption of $7.6 million of existing Housing Finance Authority of Volusia County bonds.
"The appeal of this acquisition was having the ability to acquire a well maintained asset below replacement cost in a growing market. The Arbors represents our first acquisition in the Orlando/Daytona Beach corridor and complements our existing Florida multi-family holdings in Fort Myers and Lakeland," said Steve Pogarsky, vice president of acquisitions for Madison Apartment Group.
"This transaction continues our strategy of expanding our multi-family portfolio with value-added acquisitions in primary and secondary markets nationwide."
"Our interest in acquiring strategically located assets in Florida remains strong as the state's population growth trends continue to be robust. Deland is located in Volusia County within 30 miles of both Orlando and Daytona Beach along the Interstate I-4 corridor.
"As these two cities continue to grow, Deland is positioned to experience increased population growth leading to increased demand for apartments," added Pogarsky.
MAG plans to spend $500,000 on renovations over the next year to enhance the position of the property within its market. Planned improvements include new roofs, exterior painting, landscaping and storm water drainage upgrades.
This acquisition was made on behalf of BPG Investment Partnership VII, L.P., a fully discretionary private equity fund with total equity commitments of $550 million.
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|Title Annotation:||Commercial Sales & Leasing|
|Publication:||Real Estate Weekly|
|Date:||May 3, 2006|
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