Wharton Equity Partners Purchases 18 Property Multifamily Portfolio for $250 Million

Brings recent multifamily acquisitions to over $400 million - firm looks to expand asset base in New York City and Miami in 2014.

Jan 14, 2014, 09:07 ET from Wharton Equity Partners

NEW YORK, Jan. 14, 2014 /PRNewswire/ -- Wharton Equity Partners (www.whartonequity.com), a New York City and Miami-based real estate investment firm, has announced the acquisition of a portfolio of 18 rental apartment communities located across six states in the eastern third of the US. The transaction, which totaled roughly $250 million, adds 4,179 units (3.6 million sq. ft.) to Wharton Equity's growing multifamily platform, and brings recent purchases to over $400 million, a total the firm is seeking to significantly add to in 2014 with its expansion into the New York City and Miami markets.

Wharton Equity completed the transaction in joint venture with an institutional partner and BH Management, LLC, an owner/operator of multifamily properties across the United States.  BH will serve as property manager with Wharton Equity providing comprehensive asset management and operating partner oversight.

The majority of the portfolio is located in the Carolinas with the remaining properties in Kentucky, Kansas, Texas and Georgia. Wharton Equity was attracted by the strong and growing secondary markets as well as the regional diversification of the portfolio.  "Many of these properties are in sought-after communities like Charlotte, Savannah, and Columbia, South Carolina," says Peter C Lewis, President and Founder of Wharton Equity. "The transaction fits all the metrics we look for in a portfolio: diversity, strong locations with in-place economic drivers, favorable acquisition bases, and the opportunity for appreciation through implementation of comprehensive capital improvement programs."

Over the course of the next 12 months, Wharton Equity will invest approximately $17 million into the properties, completing deferred maintenance, as well as making "value-add" upgrades to the properties and interior units. "By making the necessary additional investment," says Lewis, "we will quickly realize enhanced resident satisfaction and retention, factors that are vital to an investment like this. And because of our partnership with BH, which already manages 75% of the acquired units, we will hit the ground running and rapidly execute our plan."

"From approximately 18 months ago, we have acquired almost 6,400 units and spent over $400 million in purchasing multifamily properties," says Lewis. "I am proud of what our team has achieved in such a short period of time, and believe we are well positioned to significantly grow from here."

About Wharton Equity Partners (www.whartonequity.com): Wharton Equity Partners, formed in 1987, is a privately held New York City and Miami-based real estate investment firm which owns and develops residential, office, industrial and hotel properties. In addition, the company is active in acquiring distressed debt and undeveloped land.  Since its inception as a developer of large-scale residential communities, Wharton Equity has taken an opportunistic and nimble approach to the investments it pursues, enabling it to achieve superior returns over various business cycles.

SOURCE Wharton Equity Partners