Big Apartment Buyers

Redwood Capital Partners, the Chicago-based firm led by David Carlson and Mark Isaacson, acquired two multifamily properties totaling nearly 1,000 units in Illinois and Texas. Laramar Group, a Chicago-headquartered firm, sold the 730-unit Woodlands of Crest Hill at 1615 Arbor Lane in Crest Hill, IL. Alliance Holdings LLC, another Chicago-based company, sold the 228-unit Edgewater Apartments at 514 That Way in Lake Jackson, TX, about one hour outside of Houston. Redwood is a multifamily investment and management firm that was formed late last year. Its portfolio consists of about 80% value-add properties and the other 20% being tenant-in-common properties. Redwood added Woodlands of Crest Hill to its value-add portfolio. The 36-year-old property measures 465,041 square feet and included studio, one-bedroom and two-bedroom units. The Will County property is 94% leased with rents ranging from $600 to $950. Redwood plans to spend between $4,000 and $4,500 renovating apartment interiors. The Edgewater complex was added to the tenant-in-common portfolio. Redwood said it chose the property for its age, construction, limited competition, steady employment base and above-market yield potential. The property, built in 2005, includes one- and two-bedroom units and has a single-digit vacancy rate. The average rental rate is $965. The majority of Redwood’s portfolio remains in value-add investments in the Midwest, Southeast and Sunbelt states. "Demand remains strong for apartments in markets across the U.S., due to the downturn in the single-family housing market and a migration of homeowners back to renting," said Isaacson. "Interest rates are low, capital is still available and there are good deals out there. We're well-positioned for what we think will be a strong investment period in 2008 and 2009." The company plans to acquire $300 million in properties this year. Westdale, a Dallas-based investment and property management company, will manage the properties. for more information see : www.houstonrealtyadvisors.com or www.houstonrealtyadvisors.net