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Residential

Colliers Arranges $66.9 Million Acquisition Financing for a 933-Unit Multifamily Value Add Portfolio

Colliers Capital Markets announced it has arranged the $66.9 million acquisition and repositioning financing for a six-property, 933-unit multifamily portfolio located across Memphis, Tennessee and Columbia, South Carolina. Colliers worked on behalf of the sponsor, Lexington Partners, LLC and LAZ Investments, to secure the loan from Ready Capital Corporation. A Colliers Boston Capital Markets team representing the sponsor was led by Executive Vice President John Broderick, who partnered with Executive Vice President and US Debt & Equity Platform Leader Jeff Black, and was supported by Vice Presidents Sean Burke and Bryan Koop, US Capital Markets – The Analytics Group Managing Director Chris Chou and Analyst Chris Moore.

The portfolio consists of multiple properties across the rapidly-growing Sun Belt cities of Memphis and Columbia. The two Memphis mid-rise apartment developments, known as Azur Tower and SoMa Apartments, are both located within the thriving Memphis Medical District. Four garden-style apartment developments — Copperfield Apartments, Creekside Place, Retreat at Broad River and Riverbanks Retreat — are situated in the desirable West Columbia neighborhood.

Lexington Partners, as the new owner, plans to carry out a major renovation of the portfolio. The wide-ranging capital improvement project will substantially upgrade the apartment units, common areas and exterior of the properties. Interior upgrades will include sleek new flooring and countertops as well as kitchen and bathroom appliance replacement. Exterior renovations will include replacing walkways and decks to create an even more homey environment as well as parking lot upgrades.

“It was a pleasure to work with the Lexington Partners and LAZ Investment teams, who will capitalize on their vast knowledge and understanding of resident needs to reshape  this portfolio to meet current lifestyle demands,” said Broderick . “The company’s visionary approach has firmly established it as a leader in the value-add multifamily space by being able to recognize opportunities and having the in-house expertise to execute a thoughtful and creative business plan resulting in smartly repositioned multifamily communities.”

Lexington Partners is one of the most active multi-family residential developers in Connecticut and the Southeastern United States. Together with InnoConn Construction Corp, its construction arm, Lexington Partners has over 30 years of experience specializing in the acquisition, adaptive reuse and new construction developments in both the commercial and residential segments.

The areas of Columbia and Memphis have been growing quickly. During the last four years, downtown Memphis has been reshaped, with $13 billion in revitalization projects bringing a new vibrancy and energy to the area, while the population in Columbia has increased 10% since 2010, reflecting the area’s significant desirability. The high concentration of logistics, medical, and government jobs have helped to stabilize both economies over the past 10 years.

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