Real estate advisor, Savills LLC, acted as the financial advisor in connection with the workout, sale and recapitalisation of a distressed 4,681 unit apartment portfolio located in Ohio, Pennsylvania and Indiana.
Real estate advisor, Savills LLC, acted as the financial advisor in connection with the workout, sale and recapitalisation of a distressed 4,681 unit apartment portfolio located in Ohio, Pennsylvania and Indiana.
The portfolio includes: Leland Point - Pittsburgh, PA, 1057 units; Cedarwood Village and Dorchester Village - Cleveland, OH, 950 units; Park Valley, Ferncrest, Renata and Bavarian Woods - Cincinnati, OH, 803 units; Abbey Run, Georgetown Village, Miracle Manor, Sunnydale and Hunters Ridge - Toledo, OH, 1099 units; and Coppertree - Speedway, IN, 772 units.
Acquired by the existing ownership group in 2006 and 2007 and capitalised with approximately $172 million of debt and equity, occupancy at the defaulted properties had dropped to under 75% and the portfolio required a major infusion of new equity capital to reduce debt to supportable levels and complete required renovations. The new ownership group has replaced management across the portfolio and plans to complete a major capital improvement and repositioning program to dramatically increase occupancy levels and performance at the properties.
Savills served as the financial advisor in the transaction and was responsible for advising the existing Borrowers and Apollo Property Management in the workout and modification of existing portfolio financing and transfer of ownership to affiliates of Square Mile Capital, The Kushner Companies and Apollo Property Management. At closing, management of the properties was assumed by Apollo Property Management.
"Savills capital markets capabilities, combined with its depth of workout and restructuring experience, were critical in completing this highly complex transaction," said Jeffrey W. Baker, Executive Managing Director of Savills LLC. "We are proud to have facilitated the turnaround of this substantial portfolio of distressed apartment communities."
For further information, please contact:
Jeffrey Baker, Savills New York, +1 212 328 3941
Victoria Buchanan, Savills Press Office, +44 (0) 20 7409 8940