Miami-based alternate investment platform Leste Group and multifamily investment firm SAR Apartment Capital, today announced a $23.6 million acquisition of four multifamily properties in Columbus, Ohio, according to a press release.
“SAR is seeking to source, acquire and manage real estate assets with high return potential for our investors, and this property portfolio strongly fits our target acquisition profile,” said Abiel Ballesteros, vice president at SAR, in the statement.
The properties comprise 556 apartments, including: Winterwood Apartments, a 135-unit complex spanning four acres; Winterwood Gardens, a 99-unit building across three acres; Tall Oaks Apartments, a 160-unit and 7.8 acre property; and East Worthington, a 162-unit property occupying 9.1 acres.
As per the release, the properties are located in the Northeast submarket of the city, accessible for employers, connected by highways and with retail and entertainment destinations nearby.
Based on the research given, almost 50% of the units for the past three years are rented by a demographic that belongs to the “middle class” with a demand for “workforce housing.” It stated rent growth with annual gains of 5.8%.
“This transaction [the partnership] reflects Leste’s ability to employ a creative investment structure with a programmatic relationship,” said Jordan Suppan, managing director of Leste Credit, the firm’s debt and structured real estate transactions unit, in the release.
Suppan explains that it choice Columbus due to workforce housing demands and the potential to add value to the properties through capital improvements for the multifamily housing sector in the area.
The properties will also be renovated with new roofs, landscaping, lighting, fencing and signage on the exterior, and new bathrooms, kitchens, floors, appliances and air conditioning in the interiors. Other amenities will include renovations to the common areas, lobbies, clubhouses, leasing offices, pools and gyms, according to the statement.
The organizations also stated the importance of the local economy, population and job growth in Columbus, potential for employment at Ohio State University, state and county governments, and companies like Nationwide Insurance, JPMorgan Chase, Bath & Body Works, Honda of America, and American Electric Power.
Moreover, earlier in 2022, Intel announced a $20 billion plan of constructing two semiconductor fabrication plants to open in 2025, and employing around 3,000 people. According to NPR, the state of Ohio offered Intel around $2 billion in incentives and a 30-year tax break.
In other recent proptech news, Landing, a proptech company providing flexible apartments, closed a $125M Series C led by the growth equity firm Delta-v Capital. Investment firms Argyle Real Estate Partners and Sembler Investments, partnered to acquire $1.5 billion in multifamily real estate.