Denver-based Northstar Commercial Partners and New York-based Alto Real Estate Funds have together purchased a $224 million worth of real estate property.
According to bizjournals.com, the 5.9 million-square-foot property stretches in 12 states and known as "the most significant acquisition" of Northstar's history.
The impressive portfolio consists of 13 industrial warehouse and manufacturing facility, three retail properties and eight office buildings. While two of its 24 properties are still on the process of acquisition, the remaining 22 has already been closed.
Brian Watson, Northstar's founder and CEO, said "It is very rare in this economic environment to acquire an off-market deal of this magnitude, diversity and low occupancy rate in order to drive very attractive opportunistic level returns."
Northstar Commercial Partners and Alto Real Estate Funds bought the properties from Moshe Silagi, who currently own a massive real estate portfolio in Colorado despite selling huge chunks of his holdings. The $224- million- real estate properties are located in "New York, Pennsylvania, Tennessee, Virginia, Washington, Alabama, South Carolina, Connecticut, Georgia, Arizona, Texas and California."
Most of the properties bought are located in places with high unemployment rates and the acquisition of these properties have presented an opportunity for people living in those areas. Watson also said "The fact that the vast majority of these properties are found in places where people need work and are looking for greater opportunity makes us at Northstar all the more eager to be involved."
According to prnewswire.com, Mody Kidon, Chairman and co-founder of ALTO said "We are very excited to acquire a portfolio of this magnitude. We received a great discount on this portfolio as we acquired 24 assets in one transaction as opposed to acquiring each asset individually. Therefore, the profit potential of this deal is extremely high."
Mody's co- founder and CEO, Yaniv Melamud, said "Our investors will enjoy a portfolio that benefits from a good mix of geographic and sector diversification. We anticipate that we will be able to sell 40% of the portfolio within a short period of time and with a significant profit. The remaining assets can be sold after we increase the occupancy rate."
Both companies are looking forward for the possible profit, outcome and opportunities the purchase of this massive portfolio will bring them.
What can you say about this impressive deal? Share it in the comments!
