Properties: Sidney at Morningside, Residences at Starwood, Touchstone Apartments and Montecito Apartments
Buyer: Bell Partners
Property type: Garden style
Units: 846 total
Locations: Atlanta; Frisco, Texas; Broomfield, Colorado; and Santa Clarita, California
Purchase price: $313 million total
Greensboro, North Carolina-based Bell Partners has purchased a portfolio of four apartment communities totaling 846 units in four of its target markets — Atlanta; Frisco, Texas; Broomfield, Colorado; and Santa Clarita, California — for $313 million.
Nickolay Bochilo, executive vice president of investments at Bell Partners, said the submarkets where these properties are located exhibit healthy supply and demand fundamentals.
“At a time of increased turbulence in the capital markets, this portfolio fits our long-term strategy of pursuing investments in our target markets where we can leverage our local experience and extensive operating platform to enhance performance, using disciplined underwriting to reflect current and projected market conditions,” Bochilo said in a press release.
The portfolio on behalf of Bell Apartment Fund VII investors includes:
- Atlanta: Sidney at Morningside, which will be renamed Bell Morningside.
- Frisco: Residences at Starwood, which will be renamed Bell Starwood.
- Broomfield: Touchstone Apartments, which will be renamed Bell Broomfield.
- Santa Clarita: Montecito Apartments, which will be renamed Bell Valencia.
The 110-unit Sidney at Morningside, completed in 2009 with unit floor plans averaging 1,557 square feet, was built initially as for-sale condominiums. It features large floor plans, a high-tech fitness center, a game room, a saltwater pool and a dog park.
The 234-unit Residences at Starwood, completed in 1998, features townhome-style units with a high concentration of two- and three-bedroom floorplans. Its amenities include garages, private entries, a fitness studio and a dipping pool.
The 292-unit Touchstone Apartments, completed in 2018, has a full-scale fitness studio, resort-style pool and direct access garages. Montecito Apartments, completed in 1999 with 210 apartment homes, has golf course views, a spa and fitness center, garages and controlled gate access.
Lili Dunn, CEO at Bell Partners, told Multifamily Dive earlier this year that the company would look at assets in some urban micro-locations that have access to employment drivers and transportation hubs, particularly as gas prices rise.
“We’re seeing a rebound there and I think there could be some more interesting buying opportunities since the cash flow has been a little bit depressed,” Dunn said.
Overall, Dunn said Bell pays close attention to property fundamentals. “We pursue opportunities where we can use our platform and experience to create value for residents and investors,’ she said. “And we look at diversification in terms of the type of risk we're taking on. We want to create a geographically diverse portfolio so that it can outperform over a full cycle.”
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