They filed an 8-K recently.
If you enjoy the content at iBankCoin, please follow us on TwitterAssociated Estates Realty Corporation (the “Company”) acquired Waterstone at Wellington, a 222-unit apartment community on June 15, 2011, and Carmel Vienna Metro, a 250-unit apartment community on August 9, 2011. With the closing of the August 9, 2011 acquisition, the aggregate purchase price of the properties acquired in 2011 exceeded 10% of the Company’s total assets as of December 31, 2010.
The Waterstone at Wellington is a 222-unit apartment community located in Wellington, Florida. The Company, through a wholly owned subsidiary, acquired this community from Wellington, LLC, an entity controlled by Gables GP, Inc. for approximately $32.8 million in cash, which was funded primarily from proceeds from the Company’s unsecured term loan.
Carmel Vienna Metro is a 250-unit apartment community located in Fairfax, Virginia. The Company, through a wholly owned subsidiary, acquired this community from CP III Vienna Metro, LLC for approximately $82.6 million in cash, which was funded primarily from borrowings on the Company’s unsecured revolving credit facility.
They are paying ridiculous prices here, $150K/unit in one instance, and $350K per unit in the other. I would run from this company.
They are not purchasing real estate in Flint, MI.
What kind of cap rates are they getting on these properties? What do these units rent for? I don’t care where they are. It’s tough to get good cap rates at those kind of prices.
They are class A apartment complexes. Also known as “luxury.” A unit “low end” unit can rent for upwards of $1,300 a month, before utilities and fees.
The high end stuff can go for upwards of $3,000 /month. More if you’re talking someplace heavily populated with an expectation for higher prices, like one of the major cities.
I recently stopped by a class A apartment complex over by Bloomfield Hills, MI. They were at 98% capacity.
Apartments… in Bloomfield Hills??
What’s the world coming to?
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When I say apartments, I mean a sprawling gated community with English gardens.
The nicest you can buy occupy half of the top floor, complete with 6 bedrooms, three and a half bath, powder room, full kitchen, pantry and dinning room, and living room with a fireplace, french door studio and a walk out balcony.
I think it was Bloomfield Hills. Might have been Troy.
Excuse me, rent* not buy.
right, not like the apartments in my “bullshit midwest” town, to paraphrase fly. lol
which are built on the cheap with cheap finishes, cheap appliances, and meant for persons living there for a time but not making a life there.