PHILADELPHIA, PA - Resource Real Estate, Inc., a national real estate firm specializing in opportunistic and value-add investing in, and financing of, commercial real estate assets with a particular emphasis on multifamily properties, announces the purchase of a defaulted mortgage note collateralized by the Deerfield Apartments, located in Hermantown, Minn.
The note was purchased by one of Resource Real Estate’s retail investment programs for $10.3 million, or 52 percent of the outstanding $19.75 million principal balance on the loan.
The purchase of this note is a good example of the type of investments upon which Resource Real Estate seeks to capitalize. It was acquired at a significant discount to the outstanding principal balance on the note as well as to the property’s total replacement costs. The note is collateralized by a Class A-/B+ apartment complex which offers a strong housing option to the working class in a competitive rental market.
The property is located in the relatively affluent suburb of Duluth. Deerfield Apartments was built in 1993 and includes 166 townhomes. The total rentable square footage of the property is 255,458 and the average square foot per unit is 1,539. It is one of the largest apartment complexes in the Duluth area and offers an amenity package including a pool and sauna, a fitness center and a clubhouse.
Resource Real Estate is a national real estate firm specializing in opportunistic and value-add investing in, and financing of, commercial real estate assets with a particular emphasis on multifamily properties. Resource Real Estate has a long history of investing, managing and resolving distressed and other complicated real estate investments.
Resource Real Estate currently has an ownership interest in and manages a real estate portfolio with an aggregate value of approximately $1.6 billion, which includes over 22,000 apartment units and 1.0 million square feet of office, retail, industrial and hotel space located throughout the United States. Resource Real Estate has over 550 employees with primary offices located in Philadelphia, New York City, Los Angeles, Denver and Omaha.