ATLANTA AND DENVER — Aragon Holdings has expanded into two new markets with the acquisition of two properties in Atlanta and one in Denver, deploying approximately half of the $52 million it raised in its recently closed private equity fund, Aragon Multi-Family Cash Flow Fund II. Freddie Mac provided the balance of the $100 million acquisition.
In the Atlanta market, the company purchased Holland Park, a 496-unit property in Lawrenceville, and Azalea Springs, a 232-unit property in Marietta.
The Denver purchase was Hampden Heights, a 376-unit property located just north of the Denver Tech Center. All three properties are located in areas with a strong employment base.
These acquisitions increase Aragon’s multifamily portfolio to more than 5,000 apartment units, all acquired in the past four years. During 2012, the company purchased more than $200 million of multifamily assets in six states.
Aragon Holdings is a real estate investment and fund management company based in Beverly Hills, Calif., that acquires and manages income-producing assets throughout the countryon behalf of high-net-worth investors.
Aragon Multi-Family Cash Flow Fund II, which was formed to facilitate the company's acquisition activity and to produce monthly cash flow distributions to investors, provided equity for the three transactions.
The fund targets 10 percent annual tax-deferred, cash-on-cash returns, paid monthly to investors.
Larry Clark, president of Aragon Holdings, notes that Atlantaand Denverare new markets for the company and that they fit well with Aragon’s model of acquiring properties in areas with strong job markets and robust demand for multifamily housing.
In Denver, Hampden Heights Apartments is located in the southeast submarket, less than 10 miles from the city’s center. The local area’s average income is 20 percent above that of metropolitan Denver, and its population is projected to grow by more than 10 percent during the next five years.
In Atlanta, the Holland Park and Azalea Springs apartments are both close to major employment centers. The metropolitan area’s employment levels have returned to 95 percent of pre-recession levels. The job base expanded by 2.6 percent last year, and the forecast calls for Atlanta to outperform most other cities in the coming years.
Aragon Holdings seeks to purchase additional multifamily properties across the nation in cities that have positive job and population growth, says Clark. “We continue to identify attractive acquisition opportunities that will enable us to commit the remaining portion of Fund II, and we have already been approached by investors and institutions asking us to form a Fund III.”
— Matt Valley