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Variant Acquires 3,709 Unit Babcock & Brown Portfolio Through Receivership Sale.

LA JOLLA, Calif. -- Variant Commercial Real Estate, L.L.C. (Variant), a private real estate investment company, is pleased to announce the acquisition of a portfolio consisting of 14 multifamily properties it purchased from court-appointed receivership.

The portfolio includes 3,709 units across six states -- Texas, Nevada, Maryland, Virginia, South Carolina and Florida. The properties, originally owned by Babcock & Brown Limited, were placed into voluntary administration in 2009 until creditors voted to liquidate the company. Since August 2011, the portfolio has been managed by the receiver, McKinley Company, who will stay in place as the property manager for Variant.

"We have been tracking this deal for a long time. This portfolio has tremendous upside potential, and our team is looking forward to executing our business plan now that the deal has closed," said Matt Hawkins, Variant's President.

Cash Doye, Capital Markets Director for Variant, called the purchase, "an exciting value-add opportunity that provides us the ability to take advantage of historically low interest rates and leverage our distressed expertise to generate attractive returns for our investors."

Variant's investment thesis is purchasing assets at a discounted price and executing a high-touch management strategy resulting in high cash yield assets. Variant plans to capitalize in the portfolio's common areas, grounds and interiors to the buildings to improve the living experience for residents at the properties.

"Variant anticipates closing an additional $500 million in new acquisitions within the next 12 to 24 months. Our company continues to look for more A, B and C apartment buildings in the South and Southwest areas of the country," stated Kristina Quesada, Variant's Acquisitions Director.

The purchase was brokered by a national team of multihousing specialists led by Dirk Goris from the real estate firm CBRE.

About Variant Commercial Real Estate

Variant Commercial Real Estate, L.L.C., with offices in Tucson, La Jolla, Los Angeles, Phoenix, Dallas, Portland and New York City, focuses on opportunistic commercial acquisitions in multifamily, self-storage, hospitality assets and office, obtaining value through strategic capital improvements and enhancing property operations. Along with Variant's commercial investments, the company is an innovator in real estate technology and utilizes a title platform in partnership with New World Solutions that links providers in all 50 states. Variant has also joined forces with Assimilate Solutions, an offshore business process outsourcer, which further enhances the title service and cost value proposition. The growth of Variant's portfolio is built around maintaining disciplined investment parameters, while diversifying in target markets across the Sun Belt region and into the Northwest. With the company's expertise and integrated business model, Variant anticipates closing $500 million in new acquisitions over the next two years.
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Publication:Business Wire
Geographic Code:1U9CA
Date:Feb 28, 2013
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