CT REALTY INVESTORS, WLCM ACQUIRE THREE APARTMENT COMMUNITIES IN COSTA MESA
ALISO VIEJO, CA – May 3, 2011 – (RealEstateRama) — CT Realty Investors and WLCM have entered into a joint venture to acquire apartment communities in select coastal submarkets throughout Southern California. The CT joint venture just acquired three communities in Costa Mesa for approximately $10 million which include 55 units located within a mile of each other.
The three communities are Beachwood Apartments at 324 Victoria St. with (18) units, Orange Elden Apartments at 2151 Orange Ave. with (21) units, and College Avenue Apartments at 2290 College Ave. with (16) units. CT Realty and WLCM acquired the properties from local private parties and a trustee representing one of the communities. The College Avenue Apartments transaction is scheduled to close by the end of May.
According to James “Watty” Watson, CEO of CT Realty, CT entered into the joint venture with WLCM, a partnership including Chris Lee and Ray Wirta, with the goal of aggregating clusters of smaller apartment projects in coastal communities. The partners hope to assemble 300 to 400 apartments in the Costa Mesa submarket this year and have similar plans for other submarkets up and down the coast.
Lee, a principal in the venture, said that the newly-acquired Costa Mesa properties will be renovated, repositioned and managed by WLCM. The partnership has successfully acquired and repositioned apartment projects in other markets over the past several years.
“We are a very focused team with a hands-on approach to generating strong cash flow and residual value enhancement through creative and aggressive asset management,” Lee said. “The Costa Mesa submarket has remained very strong through various market cycles. Our goal is to acquire apartments that require capital improvements and have operating inefficiencies.”
The acquisitions were financed by equity provided by CT Cal Fund VI, WLCM and CT investors. The projects also closed with debt financing provided by CapitalSource Bank.
Damien Breaux with Morgan Skenderian Investment Real Estate Group in Newport Beach, Calif., and Steven Brombal with Hendricks & Partners in Newport Beach represented CT Realty and WLCM in the acquisitions. The sellers were represented by Ken Morgan and Rick Applebaum from Morgan Skenderian.
CT Realty Investors has acquired almost 6,000 apartment units during its successful multi-family history. After selling most of the portfolio between 2005 and 2007 at the height of the markets, CT remained passive during 2008 and 2009 and is now actively pursuing multi-family properties again.
The company has maintained a consistent team of multi-family professionals including Tom Thompson, Ray Polverini, Marc Belluomini, Dean Washle and others and is rebuilding its multi-family portfolio as it concurrently expands into industrial, non-performing debt and other opportunistic markets. CT’s venture with WLCM is moving forward at the same time it pursues larger, Inland Empire market acquisitions.
Since its establishment in 1994, Aliso Viejo, Calif.-based CT Realty Investors has completed more than 200 transactions with value in excess of $2.5 billion through a series of 10 independent discretionary private equity real estate funds. The company continues to invest in institutional quality industrial properties, debt instruments, multi-family properties and other income-producing assets. The focus of CT Realty’s investment activities is to acquire well-located assets in major markets with the potential to enhance their value through a solid, hands-on management approach. For further information, contact Carter Ewing at CT Realty Investors at (949) 330-5777 or visit www.ctrinvestors.com.
Contact:
Donna Hahn
Hahn Communications
(949) 458-3983
donna (at) hahnmarketing (dot) com
