BPG Properties, the real estate investment manager for Philadelphia-based Berwind Property Group, has acquired a 452-unit apartment complex outside St. Louis, Missouri from a St. Louis-based private partnership, its second multi-family purchase in the metropolitan area. The firm paid $22 million according to a source familiar with the deal.
The Aspen Woods Apartments, located in Florissant, Missouri, a northern suburb of St. Louis, will be managed by an affiliate of BPG’s multi-family operating arm, Madison Apartment Group. The firm will spend $1.3 million (€1 million) on renovations over the next year, according to a statement from BPG.
The Aspen Woods buy “continues our strategy of expanding our multi-family portfolio with value-added acquisitions in primary and secondary markets nationwide,” said Steve Pogarsky, vice president of acquisitions at Madison Apartments, in a statement.
The firm, which did not release the purchase price, said it acquired the complex “below replacement cost,” and called the area a “dynamic submarket with favorable demographics” which has recently seen branches of major national retailers opening in an adjoining shopping center
In March, BPG bought the 532-unit Seven Trails West apartment complex in the Ballwin, a suburb of St. Louis, through the placement of $29.5 million of new Fannie Mae financing.
The purchase was made on behalf of BPG Investment Partnership VII, which closed on $550 million early last year.
BPG owns assets across sectors, with multi-family, office, industrial, retail and hospitality properties spread across 28 states. In addition to its Philadelphia base, Berwind Properties Group also has a presence in Chicago, Washington DC, Raleigh, Denver and Atlanta. Earlier this year, the firm opened a Los Angeles office.
BPG is currently raising its eighth value added vehicle with a target of $650 million to $750 million and expects to hold the fund’s only close towards the end the second quarter of 2007, chief executive officer Dan DiLella told sister publication Private Equity Real Estate in a previous interview.
Like its two immediate predecessors, the eighth vehicle will be national in scope. Nevertheless, the firm may seek to break into some new markets or step up activity in others, specifically on the West Coast. The vehicle will target returns in the mid-teens and have an eight-year life span. Management will contribute at least $65 million.