CHICAGO AND RICHARDSON, TEXAS — Chicago-based private equity firm Thoma Bravo has acquired RealPage (NASDAQ: RP), the Richardson, Texas-based provider of property management software, in a deal valued at $10.2 billion. The price tag includes the assumption of the debt of RealPage, which was founded in 1998 and serves owners worldwide that have more than 19 million apartments in their combined portfolios. Under the terms of the agreement, RealPage stockholders will receive $88.75 in cash per share of RealPage common stock upon closing of the transaction. The purchase price represents a premium of 30.8 percent over RealPage’s closing stock price of $67.83 on Dec. 18, 2020. The stock price of RealPage opened at $87.65 per share on Tuesday, Dec. 22, up from $53.65 a year ago. According to The Wall Street Journal, software providers have performed well during the pandemic as more companies have pivoted to digital marketing of goods and services. As a technology specialist within the private equity space, Thoma Bravo was drawn to this operational trend. RealPage CEO Steve Winn echoed this notion in an interview with the Journal, saying, “we were able to do quite well during the pandemic because there was a rush by our industry to go …
DALLAS — Denver-based Steele Properties, in partnership with the Dallas Housing Finance Corp., has purchased Ridgecrest Terrace Apartments, a 250-unit affordable housing community. The sales price was $57.7 million. The property was built in 1969 on 16.2 acres and features one-, two- and three-bedroom units, as well as a playground and communal activity room. The new ownership will invest approximately $77,000 per unit in capital improvements, including new kitchens, appliances, cabinetry, toilets, flooring and fixtures, as well as mechanical system upgrades. The property’s parking lot, sidewalks, fencing and amenity spaces will also be upgraded.
MAPLEWOOD, MINN. — Marcus & Millichap has arranged the $8.1 million sale of Cobblestone Court in Maplewood near Minneapolis. The 74-unit multifamily complex was built in 1968. The three-building property sits on 2.4 acres. Amenities include a pool, picnic area, playground and onsite laundry facilities. Units average 715 square feet. Within the last three years, 42 of the 74 units have received upgrades such as new appliances, countertops and flooring. Evan Miller and Abe Roberts of Marcus & Millichap marketed the property on behalf of the seller, a St. Paul-based property management company. The duo also procured the undisclosed buyer.
SEATTLE — Enterprise Housing Credit Investments has invested $57.5 million to create Seattle’s first affordable housing high-rise development located in the First Hill neighborhood. The 17-story building will feature 365 apartments and offer two entrances for tenants at 1400 Madison St. and 1014 Boylston Ave. The investment is the largest single Low-Income Housing Tax Credit equity deal in the company’s history. Plymouth Housing is developing the Bolyston supportive housing development, located on floors two through five, which will include more than 100 studio apartments. The development will serve homeless seniors who earn up to 30 percent of the area median income (AMI) and will offer supportive services to all residents. Service staff will provide individualized case management, daily living support, social engagement, outings and coordination of psychiatric care as needed. Developed by Bellwether Housing, Rise on Madison will occupy floors six through 17 and offer 250 apartments for workforce and family households earning up to 60 percent AMI. The development will feature 91 studios, 111 one-bedroom units, 22 two-bedroom layouts and 26 three-bedroom floorplans. Rents will range from $1,015 per month for a studio to $1,783 per month for a three-bedroom apartment. Bellwether will provide resident service coordinators to assist …
PHOENIX — NorthMarq has brokered the sale of Meadows Apartments, a multifamily property located at 17602 N. Cave Creek Road in Phoenix. GFT Investments I LLC, an entity formed by trustee Roger Grove, sold the asset to Phoenix-based 3rd Ave Investments LLC, led by Zev Hendeles, for $25.5 million. Built in 1985, Meadows Apartments features 165 units in a mix of studio, one- and two-bedroom layouts. Trevor Koskovich, Jesse Hudson and Bill Hahn of NorthMarq’s Phoenix Investment Sales team represented the seller and buyer in the deal. Brandon Harrington, Bryan Mummaw and Tyler Woodard of NorthMarq’s Phoenix Debt and Equity team arranged a $18.9 million Freddie Mac acquisition loan for the buyer.
By Sean Sorrell, senior managing director, JLL As we enter 2021, there’s no doubt that we are emerging from one of the most unique and trying years that our modern civilization has ever confronted, and we all likely agree that we will never again endure a pandemic of this scale. As of the writing of this article, the first vaccines have arrived in Austin; our first responders have begun administering it to the public and we can finally see the light at the end of the tunnel. In the face of these challenges, Austin continues to flourish, at least on a relative basis, and its real estate industry is poised to take a firm lead as one of the strongest real estate markets in the nation, if not the world. A key discipline within the industry is the apartment rental market, which is currently facing obstacles but continues to successfully navigate market conditions all the same. The metro Austin apartment inventory is now approaching 200,000 units — a growth rate of 75 percent over the last eight years. While many cities would wilt under the pressure of this ongoing development surge, this market has flourished. The ongoing supply has marginally …
ROSEVILLE, CALIF. — San Diego-based Davlyn Investments has purchased The Terraces at Highland Reserve, an apartment property located in Roseville, a northeastern suburb of Sacramento, for $95 million. Davlyn plans to rebrand the 273-unit property as Ascent at the Galleria. Constructed in 2002, the community features 273 apartments with nine-foot ceilings, in-unit washers and dryers, built-in fireplaces, modern architecture, barrel-tiled roofs, more than 250 detached garages and an extensive amenity package. The property is Davlyn’s fourth acquisition in Northern California and its first in the greater Sacramento market. Mark Leary and Nate Oleson of Newmark represented the undisclosed seller in the deal.
SALINAS, CALIF. — Gantry has secured a $43.4 million loan for CreekBridge Village Apartments, a multifamily community in Salinas. Tom Dao of Gantry arranged the 35-year, 2.13 percent HUD (223f) cash-out financing through Eastern Mortgage Capital for the undisclosed borrower. Located at 1701 Independence Blvd., the 220-unit property features one-, two-, three- and four-bedroom floor plans, ranging from 803 square feet to 1,429 square feet. Units feature wall-to-wall carpeting, full-size washers/dryers, private patios or balconies, electronic thermostats and fireplaces, as well as assigned parking. The gated community also features a lighted tennis court, lap pool, spa, picnic areas, 24-hour fitness center and recreation center with a banquet room for events and gatherings.
WENATCHEE, WASH. — Quality Pacific Inc. has completed the sales of two apartment communities located in the Eastern Washington city of Wenatchee. The two assets sold for a total of $28.3 million. Castlerock Wenatchee 139 LLC acquired the 14-building, 139-unit Castlerock Apartments for $20.1 million, or $144,604 per unit. Pacific Village-Wenatchee LLC purchased the six-building, 64-unit Pacific Village for $8.2 million, or $128,516 per unit. Zach Howe of Marcus & Millichap’s Seattle office represented the seller and procured the buyers in the deals. Ray Allen and Seth Heikkila of Marcus & Millichap Capital Corp. arranged $5.3 million in fixed-rate financing for the acquisition of Pacific Village.
HOUSTON — Avenue, a locally based nonprofit developer, has broken ground on a 70-unit mixed-income multifamily community in Houston’s Oak Forest neighborhood. The unit mix will consist of 23 one-bedroom apartments, 27 two-bedroom units and 20 three-bedroom residences ranging in size from 706 to 1,201 square feet. While 14 units will be offered at market rates, income-restricted units will be designated for families making between $35,000 and $65,000 annually. In addition to amenities such as a playground, learning center and activity room, business center and fitness room, Avenue on 34th will offer resident services including after-school tutoring for children and credit-building and homebuyer education programs for adults. Block Cos. is the general contractor for the project, which is expected to be complete in mid-2022.