Apollo Global Management LLC’s real estate group, Apollo Global Real Estate Management, launched a partnership with Ivanhoé Cambridge, a real estate subsidiary of the Caisse de dépôt et placement du Québec, and Residential Land, a specialist prime central London residential investor and property landlord, that will acquire residential rental buildings in London. The partnership’s majority partner, Ivanhoé Cambridge, will acquire residential property exclusively with Residential Land and Apollo Global Real Estate Management.
The partnership’s first transaction is the purchase of four residential buildings, totalling 207 units, located in the prime London districts of South Kensington, Lancaster Gate, Bayswater and Marylebone.
The venture will seek to purchase prime residential property in London, with an initial investment of more than $150 million and substantial additional committed capital to take advantage of the sustained demand for high-quality privately rented accommodations. The partnership, which accelerates the continued growth of Apollo’s global real estate platform, will invest in well-located properties.
Residential Land has been appointed as strategic asset manager and property manager and will also be sourcing and managing acquisitions on behalf of the partnership.
Hudson Realty Closes Fund V
Hudson Realty Capital LLC, a New York City-based real estate opportunity fund, recently held the final close of its fifth fund targeting middle market debt transactions including new originations, note acquisition financing, DPO financing and existing loan purchases. Hudson Realty Capital Fund V and its related vehicles raised a total of $250 million earmarked for middle-market investments generally in the $5 to $35 million per-asset range.
“Fund V’s debt strategy specifically targets an underserved market segment that has been Hudson’s niche since our inception,” said Spencer Garfield, managing director who oversees the firm’s new loan originations. “We had established a fundraising goal of between $200 million and $250 million and are pleased to have met the high-end of our expectation.”
Through Fund V, Hudson has closed approximately $120 million in new originations and purchased approximately $450 million in sub- and non-performing loans.
Highlights include a $14.15 million first-mortgage loan secured by a multi-story industrial building in Bronx, N.Y.; $13.1 million in note acquisition financing ultimately secured by a power retail center in central Mississippi; and a $10.2 million multi-tranche construction loan for a 23,306-square-foot mixed-use building in Manhattan’s SoHo District.
In addition, Hudson is active in large loan-portfolio acquisitions and asset management activities. As part of its Fund V investment strategy, the company recently acquired two FDIC pools. These include a $139 million Colorado portfolio of 97 acquisition, development and construction (ADC) loans and southeastern pool of 109 commercial real estate assets with an unpaid principal balance valued in excess of $102 million.
AEW forms $250M JV with Woodmont
Woodmont Industrial Partners LLC formed an investment platform with AEW Capital Management L.P., to acquire industrial properties with a focus on east coast port and inland port markets. AEW anticipates acquiring $250 million of assets under this program.
"Our goal is to aggregate a portfolio of industrial/distribution assets in excess of seven million square feet in Northern New Jersey, Eastern Pennsylvania, Baltimore/Washington and South Florida," WI Partners Managing Principal Gene Preston said in a statement. "The relationship with AEW will allow us to move full steam ahead in identifying acquisitions where we can add value, including land for development which will provide attractive returns in these strategic target markets."
PREI Announces Leadership Changes
Prudential Real Estate Investors announced several changes to its senior leadership team, including establishing a succession plan for its global chief operating officer, naming a leader for the newly formed global client services team and announcing a new head of its U.S. business.
Global COO Dale Taysom has announced his intention to retire at the end of 2012. Eric Adler will succeed Taysom and work closely with him throughout 2012 to transition into the role while retaining his current role as head of PREI’s European business, Pramerica Real Estate Investors. In his European role, Adler will be assisted by a newly formed European executive committee consisting of Andrew Radkiewicz, Jan-Baldem Mennicken, Phil Barrett, Gerhard Wittl and Raimondo Amabile. George von Werz’s responsibility for the non-European activities of Pramerica AG, PREI’s Munich-based business, remains unchanged.
In a newly created position, Dave Bradford has been named head of global client service, a role in which he will coordinate closely with the global marketing team led by Mark Chamieh and Les Lockwood. Roger Pratt and Broderick Storie will work together to manage Bradford’s previous responsibilities as chief risk and investment officer, with Pratt covering the U.S. and Latin America and Broderick Storie responsible for Europe and Asia.
Additionally, Kevin R. Smith, who most recently served as senior portfolio manager of PRISA, has become head of the U.S. business. Cathy Marcus succeeds Kevin as senior portfolio manager of the core strategy.
Lastly, Terry McHugh, with 31 years of experience at PREI, has been appointed senior portfolio manager to replace Roger Pratt and lead PRISA II, the company’s U.S. value-added open-end commingled strategy. McHugh has been a longtime member of the PRISA II portfolio management team.
Behringer Harvard Breaks Ground for Second Phase of Luxury Multifamily Community in Dallas
Behringer Harvard broke ground on the development of Allegro II, the second phase of a luxury multifamily community it acquired in December 2010. Allegro II is slated to add 121 apartment homes developed on an adjacent 1.2-acre site in a style that complements the stabilized 272-unit first phase of the community.
Allegro is located at 15750 Spectrum Drive in Addison Circle, a 70-acre mixed-use development on a site with frontage on Dallas Parkway, a major north/south toll road providing easy access to most areas of the Dallas-Fort Worth Metroplex.
The Allegro community offers residents a resort-style pool and spa with private cabanas and lounge, an outdoor games deck and spin-biking area, two landscaped courtyards, a barbecue area, a fitness center, a game room with kitchen and billiards table, a tanning bed and a business center. Development plans for Allegro II include units with luxury finishes similar to Phase I’s including brushed nickel hardware, stainless steel appliances, granite countertops, private patios or balconies, and full-size washers and dryers.
Including the second phase of Allegro, the Behringer Harvard Multifamily REIT I, Inc. portfolio consists of investments in 43 multifamily communities in 13 states, comprising 11,295 apartment homes.