Monday, April 22, 2013

Cortland Acquires 2,237 Apartment Homes in Atlanta, GA and Dallas, TX for $244 Million




                            Lexington Farms Apartments, Alpharetta, GA


ATLANTA, GA (April 22, 2013) — Cortland Partners continued its expansion in the multifamily sector by acquiring five communities totaling 2,237 apartment homes in a series of transactions with a total capital investment of $244 million. Four of the communities are located in the Atlanta MSA and the fifth is in the Dallas MSA.

Steven DeFrancis
The Atlanta-based multifamily investment firm funded the acquisitions in part through equity provided by its new alliance with two institutional capital partners. Debt capital for the transactions was provided by Freddie Mac through Walker Dunlop ($75.85 million) and through a loan commitment led by Ares Commercial Real Estate Corporation ($107.1 million).

 “We continue the execution of our strategic investment plan as we hit our stride with these acquisitions and new institutional capital sources. Our portfolio has grown from 1,900 apartment homes to just under 13,000 apartment homes during the past three years,” said Steven DeFrancis, CEO of Cortland Partners.


                                Coventry at Cityview Apartments, Fort Worth, TX

“We have improved our economies of scale in Texas with the addition of Coventry at Cityview in Fort Worth, enhanced our allocation in the Atlanta market, which is poised to outperform the national economy, and continued to evolve the capital structure of the firm.”

 The new alliance with two institutional capital partners provides Cortland a total of $200 million ofequity capital to acquire communities in its selected markets throughout Texas and the Southeast. The first five of these investments include the following:



                                Idlewylde Apartments, Duluth, GA


·      Coventry at Cityview in Fort Worth with 360 apartment homes.

·      Idlewylde in the Duluth area of Atlanta with 843 apartment homes. Cortland intends to operate this investment as two separate communities, consistent with the original development of the two-phased community. The seller was Associated Estates, a NYSE-traded REIT.

·      Promenade at Peachtree in the Brookhaven/Chamblee area of Atlanta with 406 apartment homes.

·      Lexington Farms in the Alpharetta area of Atlanta with 360 apartment homes.

·      Longwood in the Decatur area of Atlanta with 268 apartment homes.

Promenade at Peachtree,Lexington Farms and Longwood were sold by Equity Residential, a NYSE-tradedREIT.



                                    Promenade at Peachtree Apartments
                                    Brookhaven/Chamblee area of Atlanta, GA

Cortland plans to invest in various interior and exterior upgrades to the communities consistent with its value-add investment strategy. “We have $140 million of equity capital for future investments through this new equity capital alliance. We are actively seeking investments that meet our value creation criteria throughout our targeted markets,” DeFrancis said.

 For a complete copy of the company’s news release, please contact:

Stephen Ursery
The Wilbert Group
Office: (404) 965-5026
Cell: (404) 405-2354

Tony Wilbert
The Wilbert Group
404-965-5022 (O) 404-405-3656 (C)


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