Press Release (ePRNews.com) - LOS ANGELES - Feb 22, 2017 - A newly formed joint venture of New Standard Equities (NSE) and an affiliate of Brixton Capital has acquired Arbor Terrace, a 276-unit multifamily community in Port Orchard, WA, from Sea 1800 Sydney Avenue, LP in a transaction valued at $38.15 million.
Arbor Terrace is the second acquisition in the immediate area in less than two months and third in Kitsap County in the past year for NSE, a Los Angeles, CA-based real estate investment and management company, noted CEO and founder Edward Ring.
“We love the value-creation opportunity at Arbor Terrace,” said Ring. “When we initially looked at this asset we immediately saw a tremendous potential to improve the property’s cash flow through renovation. Given that the US Navy is such a huge economic driver in the County, we became even more excited about the prospects for continued long-term growth in this submarket.”
NSE’s $3 million repositioning budget includes a full renovation of the asset’s 1995-vintage unit interiors, and improving the fitness center, leasing facility and general curb appeal of the property.
Arbor Terrace complements NSE’s recent $13.25 million value-add acquisition of the 120-unit Village Fair apartments in Bremerton, WA from a private seller. NSE plans to invest an additional $1.8 million to bring Village Fair, a 1984 vintage asset, up to modern standards. The two assets, in combination with Sea Glass Village, a 182-unit community the firm purchased in March of 2016, brings NSE’s asset base in Kitsap County to 578 units, at a total cost basis of more than $65 million.
Andrew Kirsh, co-founder and head of the real estate practice at Los Angeles-based law firm, Sklar Kirsh LLP, represented the buyer in this transaction, and was instrumental in bringing together NSE and Brixton Capital Group. “The market volatility following the election created a challenging atmosphere which seriously threatened the deal,” said Kirsh. “I was happy to be in a position to bring the two groups together to launch an important new joint venture, not just for this transaction, but for other value add opportunities that will benefit both firms in the future,” he said.
The acquisition was leveraged with a $30.15 million loan from Freddie Mac, which was arranged by CBRE’s Capital Markets Group led by Vice Chairman Brian Eisendrath.
ABOUT NEW STANDARD EQUITIES
Founded in 2010, New Standard Equities (NSE) is a full-service real estate company providing property management, asset management, construction management and project investment. The company deploys private and institutional capital to acquire and operate multifamily assets that offer investors long-term appreciation and cash flow. While it headquarters in Los Angeles, CA, NSE has extensive hands-on experience in all major West Coast markets from San Diego to the Pacific Northwest.
ABOUT SKLAR KIRSH LLP
Sklar Kirsh LLP http://www.sklarkirsh.com is a corporate and real estate transactional law firm founded by attorneys from nationally and internationally recognized law firms who provide top tier legal services in an entrepreneurial, sophisticated and focused manner. We counsel privately held and public companies, family offices, growing businesses, and high net worth individuals on legal and business matters that arise at all stages of the business and real estate life cycle, including mergers and acquisitions, purchase and sale agreements, equity and debt financings, fund formation, leasing, corporate governance, tax, executive compensation and employment arrangements, and dispute resolution. Source :
New Standard Equities