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L3C Capital Closes on $115M Multifamily Portfolio

Freddie Mac Provides $92M Across Four St. Louis Properties
November 28, 2012
L3C Capital Partners LLC has acquired a St. Louis multifamily portfolio totaling 1,447 units for $115 million, or about $79,000 per door, from DRA Advisors LLC and the Camden Property Trust.

The four multifamily communities were built in the 1970s and 1980s, and boast an average occupancy of nearly 96 percent. They include:
  • Cedar Lakes - 420 units at 36 Cedar Circle Dr. in Lake Saint Louis, MO
  • Cove West - 276 units at 12400 Lighthouse Way Dr. in Creve Coeur, MO
  • Cross Creek (renamed Waterfront Crossing) - 591 units at 807 Cross Creek Dr. in Creve Coeur, MO
  • Westchase - 160 units at 10871 Chase Park Ln. in Saint Louis, MO.

    According to Jonathan Leifer, principal at New York-based L3C Partners, this is one of the largest multifamily sales in Missouri in 2012. The firm specializes in multifamily residential properties, and plans to invest an additional $8.25 million in capital improvements to the four properties including a portfolio-wide exterior and interior rehab and upgrade.

    "The properties are extremely well-located within the desirable Creve Coeur and Lake St. Louis neighborhoods and will benefit strongly from the planned upgrades," said Leifer. "The incredibly strong occupancy across the assets and their related submarkets combined with the lack of renovated product in these markets presents a unique opportunity to improve revenues and overall financial performance."

    The transaction was financed with loans across the four properties totaling $92 million. The money was provided through the Federal Home Loan Mortgage Corporation - Freddie Mac's CME program, arranged through HFF-Chicago, a commercial real estate capital intermediary. In addition, Harbor Group International (HGI) provided $10 million in preferred equity. While not HGI's usual investment or market, the firm agreed to the partnership after being approached by L3C.

    Village Green Management, a national manager of luxury apartments, will handle the portfolio for L3C. The firm has a portfolio of 40,000 units in 13 states and already manages 4,000 units in the St. Louis area. L3C selected Village Green for its results-oriented culture, which aligns well with L3C's focus on excellence and execution, according to Chaim Kiffel, principal at L3C Capital Partners.

    Matthew Lawton, Marty O'Connell, and Sean Fogarty with HFF represented the sellers.

    Please see CoStar COMPS #2605966 for additional information on this transaction.
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