Source: Bell Partners / #Apartments #Multifamily
NEW YORK, NY - DRA Advisors LLC and Bell Partners Inc. announced that they have sold a portfolio of 20,439 apartment units in 64 communities across the nation to Lone Star Funds. The transaction was valued in excess of $1.8 billion. Bell Partners, the 12th largest multifamily management company in the US, will continue to manage the 64 communities under Lone Star ownership. The transaction closed on September 30th, 2014.
David Luski, President of DRA Advisors, said: "This portfolio has generated strong cash yields and has benefitted from our active asset management approach throughout the hold period. The end result is a great deal for our clients, with returns well ahead of expectations."
Jon Bell, President of Bell Partners, said: "We are very pleased with the outcome of this investment. In addition, we appreciate the trust that Lone Star has placed in our operating capabilities in keeping Bell on as the manager of these communities. In this respect, this transaction is both a win for our investors and our associates."
The 64 properties sold by DRA/Bell to Lone Star were originally part of a joint venture purchase made by DRA/Bell in 2008 of 86 apartment communities with 25,684 apartment homes located across the U.S. The transaction was the largest in the multifamily industry in that year. In the years following the original acquisition, DRA/Bell sold 22 communities to other purchasers, with Lone Star ultimately buying the remaining 64 apartment communities in the portfolio. CBRE represented the sellers in this transaction.