4,681-UNIT DISTRESSED APARTMENT PORTFOLIO WORKED OUT

INDIANA AND OHIO — Savills has arranged the workout, sale and recapitalization of a 4,681-unit distressed apartment portfolio. The properties include two communities in Cleveland; four communities in Cincinnati; five communities located in Toledo, Ohio; one community located in Speedway, Ind.; and one community located in Pittsburgh.The ownership group purchased the portfolio in 2006 and 2007 and capitalized the community with approximately $172 million in debt and equity; however, occupancies fell to under 75 percent, and the properties defaulted on their loans. Savills arranged the modification of the properties' existing debt as well as the transfer of ownership to a partnership between Square Mile Capital, The Kushner Companies and Apollo Property Management. The new owners plan to complete a major repositioning and capital improvements program. Apollo will now manage all of the communities.