VOL. 125 | NO. 116 | Wednesday, June 16, 2010
Arbors Of River Oaks Sells for $16.3 Million
By Eric Smith
An out-of-town company has pulled the trigger on the largest multifamily deal of 2010 with the $16.3 million purchase of the Arbors of River Oaks.
Trade Street Capital LLC of Miami bought the 191-unit Class B complex at 6369 Humphreys Blvd. in River Oaks from The Shoptaw Group of Atlanta.
The sale closed June 9 and was recorded Tuesday morning by the Shelby County Register of Deeds.
Operating in the transaction as BSF-Arbors River Oaks LLC, Trade Street Capital formally bought the property from The Shoptaw Group’s single-purpose entity SG Arbors-Memphis LLC.
Prior to that sale, the biggest deal of the year – and only other transaction to exceed $5 million – occurred in March when Philadelphia-based Resource Real Estate Inc. paid $5.7 million for the 378-unit Waterstone Landing Apartments at 5995 Waterstone Oak Way in Hickory Hill.
Built in 1990, the multi-building Arbors of River Oaks complex sits on 9.89 acres along the south side of Humphreys, near Baptist Memorial Hospital. An alternate address for the 214,321-square-foot property is 225 Arbor Commons Circle.
The Shelby County Assessor of Property’s 2010 appraisal is $12.3 million. The Shoptaw Group bought the complex in 2000 for $12.7 million.
Denny St. Romain signed the trust deed as manager of BSF-TSC GP LLC, the managing entity of the buyer. A call to St. Romain wasn’t immediately returned.
Emily-May Richards signed the warranty deed as chief operating officer and chief financial officer of the seller, which is an “affiliated group of real estate investment companies.” A call to Richards wasn’t immediately returned.
CB Richard Ellis Memphis represented the seller in the transaction. And CBRE Multifamily Capital Inc. financed the transaction with a $9 million loan to the buyer.
The property had been managed by Memphis-based Fogelman Management Group, but the buyer has brought in its own management company, said Fogelman president Mark Folgeman.
The Arbors sale also marked the fourth highest multifamily deal since 2008, following only the Parks Edge at Shelby Farms ($41 million), The Glenmary at Evergreen ($19.5 million) and River Trace Apartments ($17.8 million).
Multifamily activity is up slightly over last year. Shelby County has notched 33 multifamily sales through May, a 3 percent increase from 32 sales for the same period of 2009, according to real estate information company Chandler Reports, www.chandlerreports.com.
Apartment sales this year have averaged $785,503 and totaled $25.9 million, both of which mark declines from the 2009 average of $913,682 and total of $29.2 million.
Chandler Reports is a division of The Daily News Publishing Co. Inc.