United Dominion Takes Three for $72M

RICHMOND, VA-Multifamily REIT United Dominion Realty Trust Inc. has disclosed its recent acquisitions of three apartment properties in North Carolina, Florida and Colorado for an aggregate sum of $72 million. The purchases, which account for 1,060 residential units, bring the company’s ownership involvement up to 78,000 units.

UDRT gained ownership of the 380-unit property in Raleigh, NC and the 264-home community in Lakeland, FL via its $38-million acquisition of Credit Suisse First Boston’s 75% interest in a joint venture with the REIT. Raleigh-based the Oaks at Weston is in the city’s Morrisville area on Highway 54. Developed last year for $28 million, the property sits near Research Triangle Park and Raleigh-Durham International Airport. Lakeland’s Parke 33, which cost a little over $17 million to develop in early 2001, is a resort-style apartment community located between Tampa and Orlando where Interstate 4 and Highway 33 meet. The third and oldest property UDRT recently added to its portfolio for $34 million is Aurora, CO’s 416-unit, Reflections apartment community just outside of Denver. The first facet of the complex was built in 1981 and the second phase was completed during a major renovation and upgrade in 1996.

All three of the acquisitions are in line with the REIT’s long-term strategy. “United Dominion Realty Trust will be a national middle-market apartment REIT, operating 75,000-150,000 units in 25-30 core markets,” officials pronounced in a report from a recent sell-side analyst meeting detailing the company’s business. “The long- term value add will come from a focus of acquiring middle-market apartments (estimated at 12 million homes) and improve operations utilizing local expertise, systems and scale. Through efficient enhancements and incremental market adjustments, the new organization will be well-positioned to capitalize on potential M&A and/or large portfolio transactions.”