CHICAGO, IL - Henderson Global Investors, an independent investment manager with $91.3 billion under management, announced today that it has acquired Reading Commons, a 204-unit multifamily housing complex located 10 miles outside Boston. Henderson purchased the property for $48.5 million on behalf of its value-add CASA Partners IV fund. The property marks the fund's first northeastern luxury acquisition, providing investors with added diversification benefits.
The community was originally developed by Archstone Properties and completed in 2006. "This acquisition is a result of our belief in the long term growth and stability of the Boston apartment market, the excellent product developed by Archstone and changing credit market conditions that provided Henderson the opportunity to acquire a tax-exempt bond financed property, consistent with our CASA strategy, at very attractive pricing that has not been available for the past several years," said James Martha, Managing Director Property, North America at Henderson Global Investors. "We were able to acquire this extremely stable property with 97 percent occupancy, making it a truly strategic long-term growth opportunity for the portfolio."
Henderson has hired Corcoran Management Company to manage day-to-day operations. Corcoran is a Boston-based owner-operator-developer of apartment communities in the New England area, and will use its expertise to drive continued growth and success at the Reading Commons property.
Reading Commons is the third property acquired by CASA IV in 2008, with nine properties in total. Having raised $205 million in equity from institutional investors, including four U.S. pension funds and one corporate pension plan, the purchase of Reading Commons is part of the continued plan to acquire strategic properties during the next few months.
In anticipation of CASA IV's final capital investments next year, Henderson Global Investors plans to launch the next fund in the CASA Series, CASA V, in 2009. The addition of the CASA V fund to Henderson's real estate offerings will allow investors to continue to access exposure to diverse opportunities available in the multifamily real estate marketplace.
Henderson Global Investors is a global investment management company, providing a wide range of investment products and services to institutions and individuals in Asia, Europe and North America. Henderson manages $91.3 billion in assets and employs approximately 950 people worldwide.
Source: Business Wire