REGIONAL MARKETS: NATIONWIDE

APARTMENT FINANCE TODAY • MARCH 2008

MIDWEST

UBS Acquires Complex in Chicago Suburb

Naperville, Ill.—A fund managed by Hartford, Conn.-based UBS has acquired Thornberry Woods, a 280-unit complex in this Chicago suburb for $39.2 million. The seller was Lincoln National Life Insurance Co., based in Fort Wayne, Ind.

The complex is a mix of one- and two-bedroom units. Unit amenities include walk-in closets, and washers and dryers. Some units have gas fireplaces. The development also has individual garages, a clubhouse with a leasing center, a business center, and a fitness center.

Unit sizes range from 780 square feet to 1,259 square feet, with an average unit size of 929 square feet. The average monthly rent is $1,122. The net operating income for the property in 2006 was nearly $1.7 million, with an annualized 2007 figure of nearly $1.9 million.

The community is located near the 200-acre Greene Valley Forest Preserve, which includes 14 miles of biking and walking trails.

NORTHEAST

DBBM Provides Loan in Acquisition of REIT

New York City—Deutsche Bank Berkshire Mortgage has provided an affiliate of BPG Properties, Ltd., a $185 million Freddie Mac loan for the acquisition of Boston Capital Real Estate Investment Trust (REIT).

BPG Properties acquired the trust on behalf of its fund, BPG Investment Partnership VIII & VIIIA. The financing was structured as a sevenyear fixed-rate, plus one-year variable-rate, financing.

The BPG affiliate acquired the REIT in mid-January. Boston Capital REIT owns interests in a portfolio of 11 apartment properties consisting of 3,098 units and comprising approximately 2,713,000 square feet located in Florida, Oregon, Texas, Utah, and Washington. BPG Properties is a real estate fund manager based in Philadelphia.

SOUTH CENTRAL

REIT Sells Apartments Near Fort Bliss

El Paso, Texas—A locally based investor has acquired a 379-unit apartment community here for an undisclosed price. The seller was ASN Arbor Vista, L.P., an entity of Archstone-Smith, a private REIT, based in Englewood, Colo.

The development, Arbor Vista Apartments, is located near the U.S. Army’s Fort Bliss. It was 94 percent occupied at the time of the sale. The REIT had planned to sell the project since it was purchased as part of a larger transaction in 2005, said Jeff Patterson, vice president of the secondary markets team for Apartment Realty Advisors’ (ARA) office in Austin, Texas. ARA represented Archstone-Smith in the sale.

Interior features include private balconies, patios, and walk-in closets. Community amenities include three swimming pools with large sundecks, a clubhouse, a fitness center, controlled-access gates, a playground, and clothes-care facilities.

SOUTHEAST

Equity Puts N.C. Assets on the Sales Block

Raleigh-Durham, N.C.—Chicago-based Equity Residential, the nation’s largest multifamily REIT, is selling three apartment communities here. The properties are the 444-unit Hidden Oaks and the 344-unit Woodbridge in Cary, and the 344-unit Lenox at Patterson Place in Durham.

The apartments are located near the Research Triangle Park, one of the most prominent high-tech research and development centers in the country.

Each property features a clubhouse, a fitness center, swimming pools, and tennis courts. Individual residences feature wall-to-wall carpet, deluxe kitchens, a patio or balcony, and walk-in closets.

Transwestern’s Bethesda, Md.-based institutional multifamily group is marketing the 1,080-unit portfolio.

Perseus, J. Tucker Form JV

Atlanta—Washington, D.C.-based Perseus Realty Partners and locally based J. Tucker Development Partners, Inc., have formed a joint venture to develop a 225-unit apartment community here.

Ashton Hills Apartments, a midrise complex, will be built on a 5-acre site in the North Dekalb submarket. It gets its name from the nearby shopping center Ashton Hills.

The venture marks Perseus’ first investment in Atlanta and its first joint venture with J. Tucker Development Partners. The project is scheduled to be completed in the second quarter of 2009.

WEST

JV Acquires Denver Apartments

Denver—El Segundo, Calif.-based Pacific Coast Capital Partners and Denver-based Griffis Value Added Fund, LLC, have formed a joint venture to acquire two apartment communities here.

The properties are Gateway Park Apartments, a 328-unit complex in Denver, and Bristol Village, a 240-unit asset in the Denver suburb of Aurora. The seller was Chicago-based AMLI Residential.

The transaction adds two more Denver-area multifamily properties to the joint venture’s portfolio. Last August, it acquired Highline on Cherry Creek, a 216-unit complex in Denver.

Gateway Park Apartments, built in 1999, offers a lakeside location, a fitness center, a pool, a business center, and a clubhouse. Bristol Village Apartments, built in 2003, includes a business center, a clubhouse, a fitness center, detached garages, a pool, and a hot tub.

Angelides Joins Canyon Capital’s New Fund

Los Angeles—Former California Treasurer Phil Angelides has joined locally based Canyon Capital Realty Advisors as a principal of a new fund that plans to invest $2 billion to acquire 10,000 units of workforce rental housing and mixed-use projects in cities across the country. The new investment vehicle, Canyon-Johnson Urban Communities Fund, will begin to acquire properties in the second quarter of this year.

The Canyon-Johnson Urban Communities Fund is a partnership between Canyon and former Los Angeles Lakers basketball star Magic Johnson. (For more on this, see page 36.)

Capmark Provides $107 Million for West Coast Assets

Orange County, Calif.—Capmark Finance, Inc.’s local office arranged more than $107 million in debt and equity for the acquisition of Nutwood West Apartments in Fullerton and a portfolio of three properties in Seattle.

Situated on 6.5 acres, Nutwood West Apartments consists of 248 garden-style units. The property was 98 percent occupied at the time of the deal. The Seattle portfolio includes three communities: Gilman Meadows in Issaquah, Mallard Cove in Everett, and Mountain View Apartments in Fife. The properties consist of a total of 564 units and were 95 percent occupied at the time of the sale.

Capmark originated first-mortgage debt of $33.25 million for the acquisition of the Fullerton property, and $48.6 million for the Seattle portfolio. In each transaction, the debt was supplemented with an equity investment of approximately $13 million provided by an affiliate of Capmark Investments, L.P. Both loans were funded by Prudential Mortgage Capital.