BPG acquires $314m Pennsylvania apartment portfolio

In the biggest acquisition in the firm’s history, Pennsylvania’s BPG has acquired a $314m apartment portfolio from National Properties.

Yardley, Pennsylvania-based private equity real estate firm BPG Properties has acquired a 22-property apartment portfolio from real estate company National Properties for $314 million (€243 million).

The portfolio is comprised of 3,437 units located in Eastern Pennsylvania cities like Allentown, Reading and Harrisburg, as well as the Philadelphia suburbs. The properties will be run by BPG’s apartment management arm, Madison Apartment Group. The firm plans to spend $5 million in capital improvements on the older properties in the portfolio.

The multi-family acquisition, which is being financed with $94 million in equity and $237 million in debt, represents the largest transaction in the firm’s history, surpassing the January 2006 purchase of an industrial portfolio from the Parker Lincoln Company for $251 million.

In a statement, BPG president and chief executive officer Daniel DiLella said the acquisition came out of BPG Investment Partnership VII, a $550 million vehicle, with additional equity from an unnamed institutional co-investor.

“In less than 18 months, BPG has invested more than 80 percent of fund VII’s capital in a diversified pool of real estate assets including office buildings, retail centers, industrial properties and apartment complexes located in 13 states,” DiLella said in the statement.

BPG’s portfolio now includes 20 million square feet of office, industrial and retail space, as well as 24,000 multi-family units, in 28 states, according to the firm. BPG was founded in 1980 and has additional offices in Philadelphia, Chicago, Washington and Los Angeles.