Olympus purchases Walden in recordDallas-based Olympus Real Estate Corp. has completed its $1.7 billion acquisition of Dallas-based Walden Residential Properties Inc., one of the nation's largest multifamily REITs. According to Washington, D.C.-based Fannie Mae, which provided $650 million in debt financing for the transaction, the deal is the largest-ever privatization of a multifamily REIT.
Walden will now function as a private company under Olympus' ownership. The purchase became final after Walden shareholders, who will receive cash consideration for their shares, approved the deal in a special meeting at the end of February.
In a move related to the acquisition, Olympus has named John B. Bartling, the former president and CEO of Ohio-based Lexford Residential Trust, as the new president and CEO of Walden. Marshall B. Edwards, the outgoing CEO of Walden, will stay with the company for several months as a consultant. David B. Deniger, the president and CEO of Olympus Real Estate Corp., will also be the chairman of Walden.
Fannie Mae closed on the purchase of 93 multifamily mortgages to provide a portion of the debt financing. Bethesda, Md.-based Green Park Financial and Dallas-based Quantum First Capital originated loans on 86 multifamily properties in the amount of $630 million. Finally, Vienna, Va.-based WMF Washington Mortgage Corp. originated loans on seven multifamily properties in the amount of $20 million.Madison Capital arranges $26M for Florida apartme nts Miami-based Madison Capital Group has arranged $26.3 million in project financing for The Cove at Scotia Plantation, a 240-unit garden apartment and townhome complex in Hypoluxo, Fla. Miami-based American Land Housing Group Inc. is the developer of the project. Completion is slated for spring 2001.
The community will be adjacent to the Intracoastal Waterway and will feature eight garden-style buildings, two mid-rise buildings and two townhome buildings. The Cove will also have parking garages.
Marcus & Millichap reviews Phoenix, Sacramento markets A report released by Palo Alto, Calif.-based Marcus & Millichap warns that too much construction is weakening Phoenix's multifamily market. Another report by the company on Sacramento is more optimistic, noting that an increasing population and solid economy are propelling the strength of the area's market. The studies are part of a series of market surveys that Marcus & Millichap has recently released.
The Phoenix study reports that apartment building "continued at a rapid pace in 1999. Additions to inventory dropped only 5% from 1998 and approximately 8,241 units were delivered to the market in 1999. While this did equate to minor overbuilding, the majority of new product was within a handful of submarkets.
"Construction in the overall market has not yet tapered to a sustainable level," the report adds. "An additional 8,000 units could be delivered this year, while a more realistic number would be closer to 6,000 to 7,000."
The Sacramento report projects a more positive tone upon review of the city's construction activity. Approximately 220,000 new residents entered the area in the 1990s. "Responding to the considerable economic strength of recent years, developers have added a steady stream of new apartments to the regional market," the report says. Completions in 1998 and 1999 totaled 2,800 and 3,330 units, respectively.
"Based on current projections, 2000 should be another strong year with 3,000 completions and 4,000 starts," the Sacramento report concludes.
Palladium to develop upscale apartments, Texas-style Dallas-based Palladium Development 1 Inc., an affiliate of Dallas-based Palladium (USA) International Inc., plans to develop Grand Treviso, a 246-unit, $44.6 million apartment complex in Las Colinas, a planned unit development (PUD) in Irving, Texas. Construction of the community is scheduled to start in second-quarter 2000, and completion is slated for late 2001. Dallas-based Womack + Hampton Architects LLC designed the apartments.
The complex will contain a 17-story high-rise and a four-story mid-rise building. The average apartment size will be 1,210 sq. ft., and the average rent will be $1,974 per month.
Amenities will include formal gardens, a swimming pool and a cigar lounge. Additionally, there will be a 467-space, controlled-access garage.
Wilkinson purchases Marietta, Ga., apartments The Wilkinson Group in Atlanta has purchased AMLI at Sope Creek, a 695-unit apartment complex in Marietta, Ga., for $42.5 million. The property, which-based AMLI built in four stages from 1981 to 1995, will be renamed The Falls at Sope Creek. The MultiHousing Properties Group of Los Angeles-based CB Richard Ellis represented AMLI in the transaction.
RREEF Funds grabs Elkins Park Apartments for $20.2 million The RREEF Funds in Chicago has purchased the Elkins Park Apartments, a 216-unit complex in Elkins Park, Pa., for $20.2 million. The seller of the complex was San Francisco-based Metric Realty.
Michael Hines, Lizann McGowan, Michael Blunt and Robert Fahey of Cushman & Wakefield of Pennsylvania represented Metric Realty. The RREEF Funds represented itself in the sale.
JPI to open "king"-sized apartments in Memphis Irving, Texas-based JPI has begun construction of Jefferson River Estates, a 400-unit luxury apartment community in Memphis, Tenn. The project, which is located near downtown Memphis in the city's Mud Island neighborhood, is slated for completion in December 2001; however, the first apartment homes will open in January 2001. Dallas-based Fusch-Serold & Partners designed the apartments, while JPI serves as both the developer and construction manager.
The complex will offer one-, two- and three-bedroom units ranging from 716 sq. ft. to 1,368 sq. ft. Rents will range from $675 per month to $1,080 per month. Amenities will include over-sized bath tubs, washers and dryers, French doors and direct access garages. Also, the community is fewer than four miles from Memphis' Beale Street entertainment district.