November 9, 2006

Virtú Investments Acquires The Arbors of Central Park

Bedford, TX - Virtú Investments, LLC, a San Francisco based real estate investment management firm, acquired The Arbors of Central Park, a 192 unit apartment complex in October of 2006. The property is located in the Bedford submarket of Dallas, TX, just west of the Dallas Fort Worth International Airport and within walking distance of the HEB Harris Methodist Hospital.

The Arbors of Central Park acquisition provides an excellent opportunity for Virtú to purchase a strong value-added class B asset at an attractive CAP rate in a notably improving market. Virtú was able to purchase the property at a discount to replacement cost and will perform a modest renovation to both the interior and exterior of the building.

The Arbors was an attractive acquisition candidate for Virtú due to the unique nature of the investment opportunity. The property differentiates itself from its competition by featuring large floor plans, with “home-like” unit interiors, and is the only 1980’s vintage property in its submarket that offers three bedroom units. Due to many parents’ desire to have their children attend the highly rated HEB Independent School District, affordable three bedroom units are currently in high demand in the Bedford market.

Virtú will execute modest renovations to The Arbors that will include both interior and exterior upgrades to the building. Renovations will include improvements to unit interiors such as appliances, kitchen cabinetry, and cabinet and lighting fixtures, as well as the addition of carports to the exterior of the building. Virtú believes that such renovations will significantly enhance the Arbors’ amenity package, in turn leading to increased rents.

Virtú assumed a 10-year, fixed loan from LNR Partners at an interest rate of 6.02%. The CAP rate and loan terms combine to provide significant, immediate cash flow.

Texas based Regional Acquisitions Director Marc Olivieri (480-773-1619) sourced the investment for Virtu. For more information concerning other multi-family acquisitions in the Midwest, contact Mr. Olivieri. For information concerning acquisition possibilities in the Western U.S., contact Stuart Bone (415-999-2088). For information concerning commercial acquisitions on the West Coast, contact Will Fleming at Virtú Commercial (415-398-4202).

Michael Green and Scott McWhorter formed Virtú Investments in 1997. Since then, the company has acquired over forty properties throughout the country. The company's current portfolio is valued at approximately $400 million and Virtú has approximately $120 million of private equity under management. Virtú performs its own property management and has primary offices in San Francisco and Carlsbad, CA, and satellite offices in Seattle, WA and Scottsdale, AZ.

DOWNLOAD PDF
(Requires Adobe Acrobat Reader)