ATLANTA — Continuing its expansion in the multifamily sector, Cortland Partners has acquired, in separate transactions, three communities totaling 1,037 units in Florida and Texas for a total investment of $130.3 million. The properties are located in, Houston and Jacksonville.
These acquisitions bring to nine the number of communities that the Atlanta-based multifamilyfirm owns in its partnership with Cortland Partners GP Fund I and a large institutional capital partner. Sticking with the practice of repeat lender relationships, Cortland worked with Berkadia Commercial Mortgage LLC and Ares Commercial Real Estate Corp. to place the debt capital for these transactions. In 2013, Cortland and Ares have worked together on five acquisitions.
“These acquisitions are an important part of our strategicplan to bolster our presence in Florida and Texas,” said Steven DeFrancis, CEO of Cortland Partners. “Currently we have five additional assets in Texas and Florida under contract to purchase over the course of the summer. We will be making additional inroads into these states and significantly improving our economies of scale there as well as our overall portfolio diversity.”
Over the past three years, Cortland’s ownership portfolio has grown to almost 15,000 units in Texas and the Southeast.
The three acquisitions include:
• 510-unit Saxon Woods in Dallas for a total capital investment of $60.4 million. “We are excited about our expanding presence in the Dallas metropolitan area,” said Nick Wilhelmson, Cortland’s Investment Manager. “This market has performed exceptionally well in recent years and is poised to continue to do so in the future. The abundance of value-add opportunities here makes it an ideal market for us to grow in.”
• 301-unit Halstead in Houston for a total capital investment of $47.4 million.
• 226-unit Reserve at Deerwood in Jacksonville for a total capital investment of $22.5 million. The complex will become part of Cortland’s AQUA Deerwood community.
Cortland purchased the 391-unit Avistele at Deerwood in late 2012 and renamed it AQUA Deerwood following extensive upgrades and rehabilitation. As part of the AQUA Deerwood community, Reserve will also benefit from extensive renovations and upgrades.
Cortland’s current alliance with a domestic institutional capital partner provides a total of $200 million of equity capital to acquire communities in its selected markets throughout Texas and the Southeast. Earlier this spring, Cortland purchased five communities totaling 2,237 apartment homes in the Atlanta and Dallas markets for a total capital investment of $244 million.
About Cortland Partners: With a mission of “Creating Value for a Better Life,” Cortland Partners is a full-service multifamily real estate acquisition, and operating platform focused on producing high-quality NOI performance that generates outsized risk-adjusted returns. The Atlanta-based firm is active across the Southeast and Texas. For more information visit www.cortlandpartners.com.