Baltimore, MD (August 10, 2007) – Alex. Brown Realty (ABR), a national real estate investment company, has entered into a joint venture with the Square Lake Group to acquire two garden-style/townhouse apartment complexes. The joint venture acquired the Oak Forest Apartments, a 172-unit complex on a 16-acre site in Monroe Township, Michigan, and the Oakwood Apartments, a 143-unit complex on a 13-acre site in Toledo, Ohio. ABR provided an equity commitment of $3.48 million to the venture. Debt financing was provided by JP Morgan Chase Bank, N.A.
Both complexes are well-maintained Class B properties constructed in the late 1980s. The complexes feature ranch style town homes with pitched asphalt shingle roofs and brick and vinyl facades. All units at both complexes include central air conditioning, microwaves, washer/dryer hookups, ceiling fans, and private patios.
ABR and the Square Lake Group acquired the two complexes at a significant discount to replacement cost from a national real estate investment trust. “This acquisition is a great opportunity to create value via a more focused, hands-on management approach,” commented Tom Burton, ABR’s chief investment officer.
The investment marks ABR’s first joint venture with the Square Lake Group, a diversified real estate organization based in Bloomfield Hills, Michigan. “We look forward to working with the Square Lake Group,” commented John Prugh, ABR’s president and CEO. “We see this acquisition as an opportunity to enhance our portfolio’s diversification and invest in a multifamily market with low vacancy, where new competition is constrained by replacement cost relative to attainable market rents,” continued Prugh.
Equity and debt financing was arranged by Larry Harwood, CCIM, of iCap Realty Advisors’ located in Farmington Hills, Michigan.
Alex. Brown Realty (ABR) is a privately owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States. www.abrealty.com