Encore Enterprises has sold a stake in a portfolio of seven apartment properties with 1,612 units in Texas, Oklahoma and Louisiana, to a pension fund in a deal that values the portfolio at $175 million, or about $108,560/unit.
The Dallas developer built the portfolio from the ground up, between 2009 and 2013, and brought it to a 95 percent occupancy rate. The Texas properties are in Burleson, Temple, Texarkana and Corpus Christi, while the remainder are in Tulsa, Okla., and Thibodaux, La. The portfolio is encumbered by an undisclosed amount of Federal Housing Administration financing that has a blended rate of 4.5 percent.
Encore did not use a broker to market the portfolio.
It plans to deploy proceeds from the sale into property investments. It focuses on developments in the multifamily sector, but it buys existing hotels and office properties. It also purchases and develops retail properties in the Sunbelt, Colorado and California.
Comments? E-mail John Covaleski or call him at (267) 247-0112, Ext. 208.
“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:
- Breaking mortgage, CMBS, and REIT news
- Quarterly league tables with rankings of B-piece buyers, book runners, and lenders
- Industry moves and changes in “The Insider“