Posted by: realtormarkpalace | March 11, 2011

Sale of $460 Million Multifamily Portfolio in Washington, DC Suburb is Biggest in US Since 2008

Posted by Alex Finkelstein 03/11/11 10:29 AM EST

37-Cia-Buckley-Dune-Partners.JPGCia Buckley

Big deals are happening again. The largest multifamily transaction of its kind in the US since 2008 has closed in susburban Washington, DC.

Two New York City-based companies, Dune Real Estate Partners and Pantzer Properties, say in a prepapred statement they have jointly acquired the eight-property, 2,580-unit ‘Magazine Portfolio’ in Virginia and Maryland for $460 million.

Here are their locations:

VIRGINIA

  • Barton’s Crossing in Alexandria, VA. Built in 1990, this property has 532 units.
  • Glen at Leesburg in Leesburg, VA. Also built in 1986, this property has 134 units.
  • Lionsgate in Herndon, VA. Built in 2000, this property has 328 units.
  • Village at McNair Farms in Herndon, VA. Built in 1991, this property has 283 units.
  • University Heights in Ashburn, VA. Built in 1991, this property has 467 units.

MARYLAND

  • Fox Run in Germantown, MD. Built in 1990, this property has 218 units.
  • Watkins Station in Gaithersburg, MD. Built in 1975, this property has 210 units.

The Mid-Atlantic office of Jones Lang LaSalle brokered the transaction and called it the biggest of its kind since 2008, according to the joint news release from Pantzer and Dune.

The acquisition will be managed by Panco Management, Pantzer Properties’ management division under the brand “The Point.”

Cia Buckley, of Dune Real Estate Partners stated, “The shift away from homeownership toward rental properties is creating very attractive opportunities to invest in multifamily assets, and Dune is well positioned to capitalize on this trend.

“As the economy recovers, capital is beginning to flow back into this market and we are expecting rents to increase over the next three to four years.

“The acquisition of the Magazine Portfolio fits squarely within our strategy. In addition to this investment, Dune recently created a $1 billion joint venture platform called TDI/Dune Real Estate Investments LLC with former executives of JPI to develop and acquire multifamily assets throughout the United States.”

“This attractive portfolio of Class A/B+ assets is located in what is widely considered to be the most desirable real estate market in the country with job growth, employment and apartment occupancy rates that rival all other cities in the United States.

“We own and operate exclusively on the east coast and these assets have great potential upside through interior and exterior renovations, repositioning and rebranding.

“This deal is the 14th investment that our fund, the Panco Strategic Real Estate Fund I, LP, has made in 2 ½ years and we are delighted to add such a terrific group of assets to our portfolio,” said Edward Pantzer, CEO of Pantzer Properties.

The Dune Real Estate Funds were launched in 2005 to make opportunistic investments in a broad range of real estate-related assets, portfolios, joint ventures and operating companies worldwide.

The funds, which are managed by Dune Real Estate Partners LP, have over $1.5 billion under management and generally target distressed opportunities, underperforming and undervalued assets and portfolios, and value creation opportunities.

Pantzer Properties, Inc. is a fully integrated owner / operator of investment properties. Since its inception in 1971, Pantzer Properties, Inc. has been involved in more than $4 billion of real estate transactions inclusive of acquisitions, dispositions and refinancings across a variety of sectors.

Panco Strategic Real Estate Funds pursue an opportunistic and diverse real estate investment strategy in the United States. The funds focus primarily, but not exclusively, on the multifamily sector investing in direct real estate opportunities, strategic debt instruments and products, and other real estate related ventures.

 

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