Most Recent Acquisition Adds More Than 300 Homes to Fast Growing National Portfolio
TEANECK, NJ – In a transaction that continues a strong push by The Aspen Companies into key southeastern United States markets, the Teaneck, N.J.-based real estate concern has purchased three HUD garden apartment complexes consisting of 326 homes in prominent Georgia locations.
The large portfolio-style acquisition brings the total number of homes purchased by The Aspen Companies in southern Cities to more 1,000 HUD units in the past year alone, according to Azi Mandel, principal of The Aspen Companies, which focuses on investing in affordable rental properties throughout the country. Included in the deal were:
. Paradise East, a 176 unit garden apartment complex located at 1504 Bouldercrest Road in Atlanta acquired for $5.625 million;
. Linwood Apartments, a collection of 100 rentals at 392 Linwood Drive in Gainesville, GA purchased for 2.125 million, and;
. The $1.425 million purchase of Paradise Carrolllton, a 50 home rental community at 1210 Stewart Street in Carrollton, GA.
The properties were purchased from the original developer. The seller was a HJ Russell & Co. partnership. Andrew Daitch of Marcus & Millichap served as broker for the transaction and Steven Fleissig of Greenberg Traurig performed as lawyer.
“These were premium opportunities to strength our presence in the Southeast and continue the aggressive acquisition strategy that has enabled us to double the number of holdings in our portfolio in the past year,” says Mr. Mandel. “These properties have been extremely well-kept and are prime examples of quality affordable housing. Our goal is to complete strategic renovations over time that will further increase the condition of these communities and preserve and improve the level of affordable housing in this region.”
The Aspen Companies – which is known for its trademark capital improvement programs that significantly raise the housing stock of the properties it acquires– is expected to add some new roofs, additional landscaping and complete interior apartment renovations upon turnover at the properties
Over the past twelve months, The Aspen Companies has turned its attention to Southern markets as part of an expansion program to add a large number of high-performing and well-located project based section 8 apartment assets to its growing portfolio of rental homes.
The Aspen Companies is already one of the leading and most notable HUD owners and managers in the northeast. The company has garnered a strong reputation for its management style which focuses on significantly enhancing underperforming rental communities through its capital improvement programs which upgrade building systems, modernize grounds and common spaces and renovate homes themselves and the addition of much needed amenities and social service programs.
“By tapping into niche markets such as HUD apartment buildings, we’ve been able to grow our business tremendously with value-added acquisitions,” adds Adam Mermelstein, another Aspen principal. “Specifically, we’ve focused on distressed properties in urban middle-class neighborhoods where there’s a strong demand for quality housing that’s also affordable. While these properties have been underperforming, the locations make them prime candidates to be repositioned into positive cash flow holdings.
“Our acquisition approach and strategic improvement programs have allowed us to purchase, renovate and reintroduce them as modern apartment communities complete with all the necessary social programs and amenities that are still within the budgets of working families.”
For additional information on The Aspen Companies, please call 201-379-5504 or visit www.aspencos.com.
About The Aspen Companies
As a leader in purchasing and managing affordable multi-family HUD properties, The Aspen Companies has customized its management style towards improving underperforming rental communities from top-to-bottom, including capital improvement programs to upgrade building systems, modernize grounds and common spaces and renovate homes themselves. The company possesses a strong working relationship and is held in high regard by HUD national and field offices throughout the Country.
The Aspen Companies also provides full-service management capabilities to third-party real estate investment and property owner clients throughout the country. The Company passes along its expertise and knowledge to outside property owners and developers concerned about effective community operations, raising the bottom line and increasing profit margin.