Los Alisos at Mission Viejo. All images courtesy of Yardi Matrix 
The Hawthorne Apartments Lodge at Ames Pond Signal Hill
UDR and LaSalle Investment Management have formed a $510 million joint venture, in which the former will initially contribute a seed portfolio of four properties totaling 1,328 units. UDR will retain 51 percent ownership of the assets and receive roughly $250 million in cash proceeds. The portfolio’s value is based on a low-5 percent effective forward yield. The partnership intends to grow through future acquisitions.
The assets have an average monthly rent of $2,513 and an average occupancy of 97.6 percent. Tom Toomey, UDR’s chairman & CEO, stated in prepared remarks that the partnership is within the firm’s strategy of diversifying capital sources in order to adapt to shifting market and economic cycles. LaSalle Global CEO Mark Gabbay further emphasized multifamily as one of the most resilient and best performing asset types.
UDR will assume management of the joint venture and will earn asset, property, financing and construction management fees, as well as acquisitions fees for new properties acquired through the venture.
A diverse national portfolio
Part of the joint venture’s initial portfolio is Los Alisos at Mission Viejo, a 320-unit community in Mission Viejo, Calif., in Orange County. It is situated at 28601 Los Alisos Blvd. Another asset is located further north on the West Coast, in the Seattle area. The Hawthorn Apartments, a 284-unit community located at 14701 Main St., in Mill Creek, Wash., was acquired by UDR in 2005 for $37.1 million, according to Yardi Matrix data.
On the East Coast, Lodge at Ames Pond, a 364-unit, partially affordable community in Tewksbury, Mass., is also part of the portfolio. The 52-acre property is located at 1 Ames Hill Drive, roughly 25 miles from Boston. The fourth property is Signal Hill, which comprises 360 units. Completed in 2008, it is situated at 2170 Sentry Falls Way in Woodbridge, Va., in the Washington, D.C.-area.
