- DC

Debt financing was provided by Freddie Mac & Fannie Mae 5 Cap Realty LLC acquires apartment communities in PA, GA for $60 million

ISSUE HIGHLIGHTS Volume 29 Issue 13 July 14 - 27, 2017 Southern NJ Spotlight

lymouth Meet- ing, PA — Pennsyl- vania-based 5 Cap Realty LLC (5 Cap) and its affiliate RREIC Advisors has teamed with a private equity fund vehicle managed by JMP Asset Manage- ment LLC , an affiliate of publicly traded JMP Group LLC , to launch a multi-year national investment venture that could top $1 billion in as- sets under management. The venture will focus on acquir- ing and operating value-add multifamily assets that can be renovated, leased, and managed to create superior risk-adjusted returns. This new partnership has closed on its first two acqui- sitions: an apartment com- munity in the Philadelphia metro area and another in greater Atlanta, with a total of 446 units, for a total cost of just under $60 million. “This is a great opportunity at a pivotal time,” said David Reiner, RREIC Advisors’ managing director. “There are a lot of undermanaged assets in the marketplace. P


NorthEastern PA


Summer Chase in Limerick, PA

Grove Mountain Park Atlanta, GA

Cushman & Wakefield Thalhimer reps. seller in 165,808 s/f sale

Our team has demonstrated throughout its history that we can identify these assets and reposition them with better management, mar- keting, and capital improve- ments. Our plan is to build a billion-dollar multifamily investment platform. Over the next five years, we are targeting the acquisition of ten properties per year, each with 200-300 units, focusing on the nation’s top 50-60 markets.” The Philadelphia area ac- quisition, Summer Chase, is located about 28 miles from Center City in Limer-

unit). Its 13 garden-style build- ings offer a diverse unit mix of studio and one- to three-bed- room apartments. The venture plans to invest $3.15 million in renovations to common areas and individual residences. Debt financing was provided by Fan- nie Mae . 5 Cap affiliate Forty Two LLC (Forty2) , a multifamily property management, devel- opment, and consulting firm, will manage all of the JV’s acquisitions. Forty2 managed Grove Mountain Park prior to the acquisition and is taking over management of Summer Chase. n

ick, PA. The property has 198 large multifamily apart- ments, all with direct-access one- or two-car garages. The property was acquired for $36.3 million ($183,333 per unit) from an institutional seller. The new ownership plans to invest $2.5 mil- lion in renovations including kitchens, bathroom fixtures, and HVAC systems. Fred- die Mac provided the debt financing. The Georgia acquisition, Grove Mountain Park, is situ- ated about 18 miles from down- town Atlanta, and was acquired for $21.6 million ($81,000 per


Upcoming Conferences July 27, 2017 Central PA Industrial Real Estate & Development Summit For speaking and sponsorship information, please contact: Lea at 781-740-2900 or lea.christman@marejournal.com

Metz of Bussel RealtyCorporationcompletes over 540,000 s/f of industrial transactions

EDISON, NJ — Jordan Metz , senior vice president of Bussel Realty Corp (BRC) , a leading industrial real estate services firm in New Jersey, re- cently completed over 540,000

s/f of industrial deals, totaling more $33 million in transaction value. Metz rep-

r e s e n t e d E v e r f l o w Supplies in the purchase of a 260,000 s/f industri- al property at 2300 East


Upcoming Spotlights Commercial Brokerage Directory DelMarVa.........................................................7-10A Financial Digest..............................................11-14A New Jersey................................................. Section B Pennsylvania.............................................. Section C

Jordan Metz

Boardin Rd. in Dallas, TX. The company is based in Linden, NJ, and expanded its opera- tions with the new location in Dallas. Metz also arranged the sale of 400 South Second St. in Elizabeth, NJ, a 115,078 s/f industrial building. He repre- sented the former owner, RLFI- B SPE, LLC. SNR Holdings LLC purchased the property for $13,233,970. Metz and Eduard Skutel-

400 South Second St.

sky , vice president, of BRC represented an undisclosed seller in the sale of Fairfield Industrial Park LLC, a nine- building industrial park total- ing 165,000 s/f and located at 912 Rte. 33 in Freehold, NJ. The buyer, Fairfield Industrial Park LLC, purchased the prop- erty for $7.5 million and was represented by Imperial Real

Estate. Metz noted, “With a contin- ued lack of inventory being cou- pled with an almost insatiable demand for industrial product, investors and users alike are looking to make sense of any, and all, opportunities. Look for pricing to continue to rise, as demand is far outweighing sup- ply as an understatement.” n

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