ATLANTA — Atlanta-based real estate company ST Residential says it plans to sell a portfolio of 13 multifamily properties in eight states, which are valued at $1 billion.
The properties are located in Atlanta, Chicago, Houston, Las Vegas, Los Angeles, Phoenix, Stamford, Conn., and Tampa.
ST Residential, a partnership between the FDIC and a group of private U.S. real estate investors, acquired the portfolio in October 2009 from Corus Bank. Since the sale, the company has repositioned the properties and upgrades included redesigning the landscaping, sales centers and model units.
The portfolio's occupancy (on stabilized assets) has reached 98 percent.
“ST decided to sell now to capitalize on historically low cap rates for high-quality, condo-finish apartments,” says Jonathan Pertchik, chief operating officer at ST Residential. “Also, after four years a majority of the assets have been realized, and selling a large tranche now fits in nicely within the expected life cycle of the portfolio.”
Barry Sternlicht, chairman of ST Residential and chairman and CEO of Starwood Capital Group, says the portfolio transaction has performed very well for the FDIC and the company's private investor group.
“The partnership has repaid $1.3 billion of FDIC purchase money notes and has more than $1 billion of cash in hand,” says Sternlicht. “More than 32 loans were paid off at par and we have sold 60 percent of the condo inventory we acquired at ever escalating prices.”
The company will list the assets at the National Multi-Family Housing Council's annual meeting in Palm Springs this week, Jan. 22 and 23.
ST Residential has hired HFF and Eastdil Secured to manage the sale.
— Liz Burlingame