03/23/2011

Big Southeast Apartment Portfolio on Block

In one of the largest non-distressed multi-family offerings since the downturn, a developer is marketing six complexes in South Carolina, Georgia and Tennessee.

The 1,800-unit portfolio could attract bids of about $100,000/apartment, or $180 million. The owner, Johnson Development of Spartanburg, S.C., prefers to sell the properties to one buyer. But it will consider bids on individual complexes or groups of properties.

The average occupancy rate is about 90%, with levels at individual complexes ranging from 88% to 95%. At the estimated value, the buyer's capitalization rate would be about 7%. Apartment Realty Advisors has the listing.

Few large apartment offerings have hit the market since the multi-family sector began to revive last year, and most of those have been in major markets. Institutional investors have said they are willing to expand their scope to secondary markets to capture higher yields, and the Johnson portfolio will offer a relatively large opportunity. Regional apartment operators are also expected to compete.

Johnson completed one complex in 2004 and the others in 2008 or 2009. Four are in South Carolina, with one each in Tennessee and Georgia. The properties are:

The 328-unit Haven at Lake Murray, at 2170 North Lake Drive in Columbia, S.C.

The 284-unit Haven at Market Street Station, at 8034 MacBean Loop in Aiken, S.C.

The 268-unit Haven at Mill Creek, at 2350 Freedom Boulevard in Florence, S.C.

The 264-unit Haven at Boiling Springs, at 901 Dornoch Drive in Boiling Springs, S.C.

The 372-unit Haven at Knob Creek, at 1185 West Mountain View Road in Johnson City, Tenn.

The 284-unit Haven at Reed Creek, at 303 Wave Hill in Martinez, Ga.

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