Redwood Capital sells three suburban apartment complexes
Redwood Capital Group, a Chicago-based multifamily investment firm, recently sold three suburban apartment complexes as part of eight transactions conducted during the first quarter of 2016 with a total value of $404.8 million.
In addition to the three sales, Redwood sold two more properties and acquired three properties nationwide. One property was recapitalized with a new equity partner, resulting in both a disposition and an acquisition for Redwood.
Individual terms of the transactions were not announced.
The local sales include:
• Woodlands of Crest Hill, a 730-unit apartment property at 1615 Arbor Lane in Crest Hill.
• Fountains at Stone Crest, a 400-unit apartment property at 1 Fountainhead Drive in Westmont.
• Lakes at Fountain Square, a 384-unit property at 500 Lakehurst Road in Waukegan.
The Redwood team overseeing the transactions included Tammy Kelly, senior vice president, asset management, and Courtney Crowder, senior associate. Redwood was represented in all three transactions by the HFF team of Sean P. Fogarty, managing director and Marty F. O'Connell, managing director.
Properties in Colorado and North Carolina were also sold. The company acquired two properties in Minnesota, A property in Largo, Fla. was acquired in a joint venture between Redwood and an institutional investor. The Redwood team of Kristina Lynn, assistant vice president, acquisitions and Crowder handled the transaction, which was an off-market deal that involved no brokers.
"We are very active in the market both as buyers and sellers, which highlights our nimble capital base whose ability to recognize and act on opportunistic transactions mirror our own tactical philosophy on portfolio management," said Redwood Partners David Carlson. "There are still abundant prospects for value creation in the multifamily sector, particularly value-add strategies in the renter-by-need space. Our prominence in this segment, and our ability to act with speed and a surety of execution, results in sellers working with us on off-market transactions as well as provide us a competitive edge on marketed transaction."
During the second quarter, the firm is under contract to acquire an additional 620 units covering three properties for a total of $77.3 million and marketing two more assets for sale covering a total of 646 units.
Headed by Carlson and Mark Isaacson, Redwood owns and operates 32 properties totaling almost 10,000 units in multiple markets throughout the Midwest, Southeast and Southwest.