NEW YORK, NY - Dune Real Estate Partners ("Dune") and Pantzer Properties, Inc. ("Pantzer") announce the closing of a $460 million acquisition of an eight-property multifamily real estate portfolio in suburban Washington, D.C. The 2,580-unit portfolio, known as the "Magazine Portfolio," was purchased by a 50% / 50% joint venture between Dune and Pantzer, and will be managed by Panco Management, Pantzer Properties' management division under the brand "The Point."
According to Jones Lang LaSalle, whose Mid-Atlantic office brokered the transaction, the $460 million sale is the largest multifamily transaction in the country since 2008.
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.
Headquartered in New York City, 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.
Source: Dune Real Estate Partners