SHREVEPORT, LA - Post Investment Group, Inc, a Los Angeles-based opportunistic real estate investment firm, today announced their initial foray into the Louisiana multi-family market with the acquisition of Quail Creek Apartments. Post acquired the property, a 403 unit class B complex, through an on market transaction brokered by Austin-based Apartment Realty Advisors. Quail Creek represents the first significant transaction outside of Texas for Post, marking a strategic shift in their investment platform.
Source: Post Investment Group
In addition to developing inroads into a new market, the property is the first non-distressed opportunity pursued in 2010. In reference to the recent transaction, Post commented that the influx of investment-grade capital in tandem with inexpensive debt has enabled firms to realize positive leverage down to a 4.50% cap rate and thus resulted in a migration toward Class A product. In conjunction with institutions, dividend-driven opportunistic groups have followed the financially engineered yields to newer product as well, creating a vacuum in Class B appetite and resulting in this opportunity for Post. According to Scott Pickett, Director of Acquisitions for Post, "Post is actively looking to expand both our core-stabilized and distressed acquisition platforms by identifying strategic assets in fundamentally sound markets." Mr. Pickett expands to say, "Post is in the process of evaluating new markets that exhibit strong economic and operational metrics as well as transactional volume and clarity. In addition to furthering our foothold in Texas, we are currently exploring markets such as Colorado and California and potentially Arizona and Florida."
Quail Creek is the fourth acquisition for Post in 2010, and in combination with deals currently under contract will surpass their 2010 goal of $120 million in total capitalized acquisitions for the year. By the end of 2010, Post expects to have expanded its holdings to nearly 10,000 apartment units, an important milestone in multi-family ownership. Moving forward Post is focused on expanding their breadth of operations in multi-family through continued investment vigor and with the creation of a development division which is expected to break ground on their first two projects in December of this year.
Quail Creek was purchased through a joint venture with a Los Angeles-based private asset management firm.
Post Investment Group is an opportunistic real estate investment firm focused on the acquisition of multi-family assets nationwide. The company specializes is both core plus and distressed investment opportunities capitalized through private and institutional investors.