Silver-McCann closes apt fund with Texas buy

The Silver-McCann Apartment Group, launched in 2005 by Silver Capital, and McCann Realty Partners, has closed its second apartment fund, Silver-McCann Apartment Group II.

The vehicle closed concurrently with its final investment, the acquisition of the 240-unit Villas at West Road Apartments located in Houston, Texas. The acquisition was the fund’s fifth property asset. Neither Silver nor McCann were available for comment. No financial details were available.

Silver-McCann Apartment Group II, launched in January 2007, has made total acquisitions of $154 million (€105 million) over the past 18 months.

The “garden-style” Villas at West Road Apartments, totaling 240 units, will be managed by Lincoln Property Company.

Larry Silver, Silver Companies chief executive officer, said in a statement the current market environment, marked by decreased financing and less equity for deals, provided the firm with an opportunity to grow its apartment portfolio. He added that the firm planned to “continue to take advantage” of the current investment climate.

The Silver-McCann Apartment Group was set up in 2005 by apartment investment company McCann Realty Partners and Silver Capital – a division of real estate development and investment firm Silver Companies – to acquire apartment assets in the Mid-Atlantic and Southeast region of the US. The duo believe demand for rental apartments will increase in the future, due to the lack of affordable housing leading to increased occupancy and rental rates.

Silver Companies’ private equity division has provided more than $1 billion in capital to builders and developers during the last six years, according to the firm. Its two headquarter offices are located in Washington, DC and Boca Raton, Florida.

McCann Realty Partners, formed in October 2004, acquires, develops and manages garden apartment communities in the US with a focus on the Virginia, North Carolina, Atlanta, Texas and the Washington DC/Baltimore markets.