HOUSTON — Inland American Real Estate Trust Inc., a non-traded REIT based in Oakbrook, Ill., has closed its sale of 14 Class A multifamily assets in Texas, Oklahoma and Kentucky. Charleston, S.C.-based Greystar, a national property management, investment and development company, purchased the communities from Inland for approximately $460 million, equating to about $105,000 per unit.
“Both Inland and Greystar are first-class organizations and this transaction was accretive to both of them,” says David Oelfke, principal and broker of ARA’s Houston office. Atlanta-based ARA represented Inland in the portfolio disposition. “Inland had made strategic investments in the downturn between 2008 and 2011 and had a great basis in the properties, and Greystar has a great infrastructure to implement a value-add strategy on the portfolio. It’s a great win for both groups.”
The multifamily portfolio consisted of 4,371 units, most of which are located in Houston (six). The remaining properties are located in Oklahoma City (four), San Antonio (two), Dallas (one) and Louisville, Ky (one). Each property in the portfolio has the opportunity for Greystar to upgrade interiors and community amenities.
Oelfke brokered the sale of the assets located in Texas and Kentucky. Oelfke teamed up with David Burnett of Sperry Van Ness on the sale of the Oklahoma City assets. According to ARA, Inland American is transitioning its focus from investing in conventional apartments to investing in student housing properties.
“The timing for selling the portfolio could not have been better. Attractive pricing and the demand for multifamily developments is incredible,” says Oelfke. “Inland plans to reinvest its proceeds of the sale into multi-tenant retail, student housing and retail properties.”
As of June 30, Inland American owned 565 properties, representing approximately 41 million square feet of retail, industrial and office properties, 5,186 conventional multifamily units, 6,521 student housing beds and 16,645 hotel rooms. Inland American is one of six REITs that are, or have been, sponsored by affiliates of The Inland Real Estate Group of Cos. Inc.
Greystar is the largest apartment community operator in the U.S., with 215,000 apartment units in more than 100 markets.
— John Nelson