PHILADELPHIA, Apr 05, 2012 (BUSINESS WIRE) –
Today, the Resource Real Estate Opportunity REIT, Inc., sponsored by Resource
Real Estate, Inc. (“Resource Real Estate”), announces the purchase
of Houston-based Bristol Apartments. Resource Real Estate is a national
real estate firm specializing in opportunistic and value-add investing
in, and financing of, commercial real estate assets with a particular
emphasis on multifamily properties.
The property was a Real Estate Owned (REO) asset, meaning it was
foreclosed upon and bank owned, and purchased by the Resource Real
Estate Opportunity REIT, Inc. for $11.4 million. This represents a 78
percent discount to the property’s estimated replacement cost of $53
million. In August 2010, Fannie Mae foreclosed on the property which had
an outstanding loan balance of $18.6 million, as reported by Trepp.²
Trimont Real Estate Advisors, acting as special servicer on behalf of
Fannie Mae, sold the asset.
Bristol Apartments includes 856 units, approximately 691,000 rentable
square feet and has an occupancy level of approximately 52 percent.
Resource Real Estate Opportunity REIT, Inc. plans to invest additional
capital to improve the overall condition of the property in order to
bring all units to leasable condition, stabilize the occupancy rates and
increase the property’s value by making it cash flow positive. Exterior
painting, landscaping and significant upgrades to the common areas will
be made in an effort to enhance the property’s appeal and marketability.
Property amenities include a clubhouse, swimming pool, fitness center
and playground. Resource Real Estate manages 10 other properties in the
greater Houston area, totaling over 3,000 units.
The acquisition of the Bristol Apartments — a distressed multifamily REO
property experiencing operational and capital deficiencies and in need
of stabilization — is a good example of the type of properties that the
Resource Real Estate Opportunity REIT intends to acquire. Bristol
Apartments has excellent visibility and proximity to strong employment
bases in the area including the William P. Hobby Airport, the Port of
Houston, various medical facilities and retail establishments including
Wal-Mart, Target and Macy’s.
¹Replacement value is estimated using the Marshall Swift Commercial
Estimator. The replacement cost does not include any depreciation.
²Trepp is the leading provider of information, analytics and
technology for the CMBS, commercial real estate and banking markets.
About Resource Real Estate
Resource
Real Estate is a national real estate firm specializing in
opportunistic and value-add investing in, and financing of, commercial
real estate assets with a particular emphasis on multifamily properties.
Resource Real Estate has a long history of investing, managing and
resolving distressed and other complicated real estate investments.
Resource Real Estate currently has an ownership interest in and manages
a real estate portfolio with an aggregate value of approximately $1.6
billion, which includes approximately 23,000 apartment units and 500,000
square feet of office, retail, industrial and hotel space located
throughout the United States. Resource Real Estate has over 525
employees with primary offices located in Philadelphia, New York City,
Los Angeles, Denver and Omaha.
Resource Real Estate is a wholly owned subsidiary of Resource
America, Inc.
/quotes/zigman/77490/quotes/nls/rexi REXI
+1.60%
, a specialized asset manager. As of
December 31, 2011, Resource America had $13.3 billion in assets under
management.
SOURCE: Resource Real Estate, Inc.
Media Contact:
Jimmy Moock
Gregory FCA for Resource Real Estate
Office: 610-228-2125
E-mail: jimmy@gregoryfca.com
or
Company Contact:
John Towle
Chief Marketing Officer at Resource Real Estate
Office: 267-256-5964
E-mail: jtowle@resourcerei.com
Copyright Business Wire 2012
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Article source: http://www.marketwatch.com/story/resource-real-estate-opportunity-reit-inc-acquires-bristol-apartments-2012-04-05
