Equus Capital Partners, based in Philadelphia, has sold an 11-property portfolio with 2,615 units to Investcorp, a global alternatives asset manager, for approximately $370 million. The assets are located in several of the hottest real estate markets in the country, including Tampa, Lakeland, and Orlando, Fla.; Atlanta; Raleigh, N.C.; St. Louis; and Philadelphia. The deal reduces the holdings of the Equus Fund IX from 30 properties in 2013 to just four today.
The latest batch to be sold were 95% leased at the time of sale, with an average vintage of 1994 and an average unit size of 1,020 square feet. Michael Joseph, Matthew Lawton, and Stella Pappas of Holliday GP Corp. represented Equus in the transaction. HFF’s debt team, Mike Tepedino, Mike Gigliotti, and Mona Carlton, secured financing for the buyer.
Equus acquired the properties between 2013 and 2015 and then spent over $20 million on capital improvements, including unit renovations, amenity upgrades, and curb appeal projects. Equus will remain involved with the properties through afffilate Madison Apartment Group, which has provided on-site management and leasing and also oversaw the improvement program. Investcorp partnered with an affiliate of Equus in the purchase of the portfolio and has engaged Madison to continue the asset and property management duties.
“We are pleased with the execution of the sale of this portfolio and look forward to our new relationship with Investcorp in bringing further improvements to these communities,” said Christopher Locatell, senior vice president and director of dispositions for Equus. “The portfolio is positioned to deliver an attractive, stable, and predictable cash flow for the new venture with Investcorp while at the same time the markets continue to support further enhancement opportunities and ability to push rents higher.”
