RICHMOND, VA - Landmark Apartment Trust of America, Inc. (LATA), a multifamily real estate investment trust (REIT) with assets located in select metropolitan areas throughout the Southern United States, today announced it has acquired Landmark at Emerson Park, a 354 unit apartment community in Webster, TX, a submarket of Houston. The property is the company’s first acquisition since it announced a recapitalization in early August.
The Class A property, formerly called Gardens at Challenger Park, was completed in 2009 and offers residents gated entries, landscaped courtyards and open spaces with grilling stations, a swimming pool, fully equipped fitness center, and designer kitchens. The city of Webster is located approximately 20 miles southeast of Houston, and serves as a bedroom community to nearby Clear Lake and its thriving high tech industry.
In announcing the transaction Stanley Olander, Chief Executive Officer of Landmark Apartment Trust of America, said, “We are pleased to add Landmark at Emerson Park to our portfolio and expand our presence in the vibrant Houston market. This high quality community fits with our strategy of purchasing well located properties in growing markets, delivering attractive returns for our shareholders.”
Joseph Lubeck, Executive Chairman of Landmark Apartment Trust of America, added, “This acquisition is representative of Landmark Apartment Trust’s ability to grow our portfolio strategically and create value for our investors using proceeds of our recent preferred equity issuance. We look forward to evaluating additional opportunities that allow us to expand our footprint in attractive southern markets.”
Landmark at Emerson Park was acquired with a combination of equity and first mortgage financing provided through Fannie Mae. The loan carries an attractive variable rate and includes a flexible prepayment option. The equity for the transaction was generated from the proceeds of the $50 million of preferred equity the company sold in early August. The preferred offering was part of a recapitalization transaction that also included the contribution of a portfolio of 21 apartment communities, containing approximately 6,100 units, valued at $485 million.
Once all properties are released from escrow, LATA will own 37 apartment communities, containing approximately 10,400 units, in 17 growing markets across the Southern United States. In addition, LATA continues to provide fee-management services for approximately 12,000 units not owned by the company.
Brokerage work for the seller was performed by Rob Wilson III with Wilson Investments Inc. while LATA was represented by Tom Wilkinson of KET Enterprises Incorporated and Jim Hurd of Houston Income Properties, Inc.
Landmark Apartment Trust of America, Inc. is a real estate investment trust (REIT) that acquires, holds and manages a diverse portfolio of quality apartment communities with stable cash flows and growth potential in select metropolitan areas located throughout the Southern United States.