Sunday, July 15, 2007
Post Investment Group acquires a two building 682 unit apartment portfolio located in South Dallas and Duncanville
Sounds like the rent is going up.
Post Investment Group, LLC ("PREG"), a Los Angeles based opportunistic real estate investment firm, recently completed a pair of acquisitions totaling 682 apartment units in 2 distinct Dallas area multi-family complexes. The two properties, which traded for a combined price of approximately $22 million, are located just 4 miles from one another and highlight a strategic shift in operations for PREG. The Company has begun to actively pursue core plus and value add assets in Texas and the Sunbelt states, while divesting of their Southern California assets at their peak market value. According to Jason Post, President of PREG, "The intention is to redeploy capital from inflated stabilized regions to under-valued expanding markets, thereby accessing yields in excess of investor expectations."
The assets, located in the Duncanville and Oak Cliff areas, have historically been over 96% occupied. PREG believes the properties have significant upside potential that can be realized through diligent property management, exploiting supply/demand imbalances and by employing a deliberate marketing campaign designed to roll the in-place rents to market thresholds. With the addition of these two investments, PREG continues to increase their portfolio in the burgeoning Texas marketplace. The region has intrigued the Company in recent years due to its solid demographics, typified by historically positive absorption and recent rent growth. The projected increase in both employment and population growth (2.3% and 2.8% respectively) compound PREG's interest in this area as Texas has yet to see the cap rate compression evident in markets with similar statistics.
Jack Ehrman, Director of Acquisitions at PREG, says that, "With the capital markets in their current form, transactions of this ilk are an ideal vehicle for providing significant returns to our investors while mitigating the residual risk typically associated with real estate investment. We will continue to aggressively acquire in this region, while exploring opportunities in numerous other emerging markets."
Source: Post Investment Group
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