BOSTON — Winthrop Realty Trust (NYSE: FUR) has entered into an agreement to acquire four recently constructed Class A apartment buildings for $246 million.
The agreement is with ST Residential, an affiliate of Starwood Capital, along with an unnamed third-party investor and the Federal Deposit Insurance Corp. The FDIC acquired the interest from the failed Corus Bank.
Built to condominium specifications prior to a lender foreclosure, the properties include 44 Monroe in Phoenix; Highgrove in Stamford, Conn.; Mosaic II in Houston; and San Pedro Lofts in San Pedro, Calif.
Winthrop expects to close on the purchase of these properties by October. The Boston-based company provided a $25.5 million nonrefundable deposit on the properties. A combination of cash reserves and new secured financing is slated to pay the remaining balance, according to Winthrop.
“We like the optionality created by the opportunity to acquire a cash flow positive portfolio of high quality condo-constructed multifamily assets at what we believe to be well below replacement cost,” says Michael Ashner, chairman and CEO of Winthrop.
44 Monroe is a 34-story, 184-unit condominium building that includes 1,377 square feet of ground-level retail. Constructed in 2008, the property's amenities include a spa and swimming pool with sundeck, fully furnished clubroom, outdoor terrace with gas grill and fire pit, as well as a 24-hour lobby attendant, fitness center, business center, eight floors of secured parking and a conference room.
Highgrove is an 18-story residential building comprised of 92 condominium quality units. Constructed in 2011, the property's amenities include a 24-hour doorman and concierge, valet parking, shuttle to metro station, fitness club and spa with steam, as well as a sauna, yoga studio, sky lit indoor pool, walk-in climate-controlled wine cellar, movie screening room, card and billiards room, dog walk area and furnished tenant guest lodgings.
Mosaic II is a 29-story, 396-unit residential building, which includes 20,065 square feet of ground-level retail. Constructed in 2009, the property's amenities include a 24-hour valet service, a 6,000-square-foot wellness center with steam rooms and saunas, an infinity-edge pool and 24-hour concierge services. The property also includes penthouse units of up to 2,959 square feet and a 6,500-square-foot social lounge and recreation area.
San Pedro Lofts includes 89 units in two residential buildings with 3,545 square feet of ground-level retail. Constructed in 2008, the property's amenities include a sun deck, an outdoor fireplace, a fitness center, secured covered parking and an outdoor community courtyard.
In 2009, the FDIC took control of Corus Bank in Chicago. ST Residential purchased a 40 percent equity share in a $4.5 billion portfolio of the Corus Bank’s construction loans and REO assets. The FDIC held the remaining 60 percent share.
Winthrop Realty Trust is a publicly traded real estate investment trust focused on acquiring, owning, operating and investing in property, as well as real estate financial instruments including CMBS, bonds, REIT preferred and common stock.
Winthrop's stock price closed at $11.89 per share on Tuesday, up from trading at $11.02 per share one year ago.