Newton, Massachusetts-based Northland Investment Corporation has acquired a portfolio of nine multifamily properties in Texas for $270 million (€183 million). The properties, totaling 2,985 apartments, were acquired through the firm’s Northland Fund III.
The deal is believed to be the largest multifamily deal to date in Austin, Texas, according to Northland. The properties included the River Stone Ranch, Sedona Springs; The Arboretum at Stonelake; Madison at the Arboretum; Village Oaks, Madison at Scofield Farms; Madison at Walnut Creek; Madison at Wells Branch; and Madison at Stone Creek. Northland plans to refurbish the interiors of the properties.
The firm’s Austin residential portfolio now totals 4,500 apartments.
Northland, which closed its Northland Fund III on $200 million in the beginning of 2008, is targeting multifamily assets along the East coast of the US, including the Sunbelt areas and parts of Arizona and Texas. David Morency, Northland’s chief investment officer, told PERE demographics and market conditions had combined to make multifamily an attractive sector. “This is as good as it has been in the 10 years that I’ve been with Northland,” he said. A lack of credit was prompting many first-time buyers to rent, while uncertainty was leaving many other buyers “reluctant to jump into the market,” Morency added.
“There is some softness in the market in areas where there has been oversupply, not least from condo developments such as in Las Vegas, Phoenix and parts of Florida, but otherwise operating fundamentals have held up in many markets.”
Northland, which closed its second fund on $100 million in 2005, is targeting multifamily assets along the East coast of the US, including the Sunbelt areas and parts of Arizona and Texas. Northland has been busy expanding its US multifamily portfolio over the past year, with 24 acquisitions in the last twelve months, according to the firm, totaling 5,906 units.
In March, it acquired The Highlands at Faxon Woods, a 196-unit apartment building in Quincy, Massachusetts. Northland paid $34 million for the properties, acquired from investment firm Cornerstone Real Estate Advisers.