Watergrove Townhomes, a 1,000-unit class B residential complex outside Memphis, Tennessee, has been purchased by Philadelphia-based private equity firm BPG Properties for $46 million (€32 million).
BPG bought the complex for about $46,000 per unit from Fogelman Realty Group, an investment entity of the Fogelman family. According to Richard Ellis, which brokered the deal, the deal has set the record for the largest single multifamily transaction in the Memphis market.
Watergrove Townhomes, built 20 years ago, consists of 144 acres of property which house 155 one- and two-story residences. According to Fogelman, occupancy at the complex is about 94 percent. According to reports, BPG will rename the property Madison at Cypress Lakes, which will brand it as being part of the firm’s multifamily operating arm, Madison Apartment Group.
The Memphis area has been seeing a number of large deals in which local owners sell their properties to large out-of-state firms. The city has seen stable employment growth and real estate prices remain attractive.
Watergrove is BPG's first acquisition in Memphis. The investment was made from BPG’s new fund, BPG Investment Partnership VIII, which closed on $850 million in August. That fund is investing in the office, multi-family, industrial and retail sectors in the US. Founded in 1980, BPG has offices in Chicago, Los Angeles, Boston, Washington DC and Raleigh. The firm currently has more than 20 million square feet of office, retail, student housing and industrial real estate in its portfolio, as well as 25,000 apartment units.