BROOKLYN, N.Y., July 28, 2006 (PRIMEZONE) -- Ari Parnes, Managing Director and Principal of Collins Group LLC, announced today the Group's acquisition of the 2,331-unit Landmark Birmingham Portfolio, six communities situated in Hoover and Homewood, Alabama.
In a partnership with New Jersey-based Lightstone Group, Collins purchased the portfolio from the Florida-based Landmark Properties Trust. The Birmingham office of CapMark Financial Group (formerly GMAC Commercial Mortgage) provided financing. Park Avenue Funding of New York City participated as an equity partner. Birmingham-area Hinton Properties and Engel Realty acted as brokers.
Collins' Alabama portfolio currently stands at 5,000 units, with a gross value in excess of $300 million. "These are outstanding communities in the strongest markets in the area," remarked Ari Parnes, referring to the portfolio. "Collins owns properties literally next door and across the street from these communities which have been shown themselves to be prime and pristine assets," continued Parnes.
The portfolio marks Collins' ninth Alabama acquisition. "The Birmingham market is seeing strong occupancies and, with a moratorium on new additions, this is only expected to remain the case," remarked Finance and Acquisition VP Jay Herman. "We remain focused on Birmingham. Thirteen consecutive quarters of steady rent growth attest to this market's viability," added Parnes.
Parnes stressed that Collins' regional expansion plans are not expected to slow down. "By the end of this year, Collins' Alabama portfolio will total some 8,000 units with a gross value of over $500 million," Parnes continued. Collins has several acquisitions pending for the third and fourth quarters of 2006. "Collins has found numerous opportunities in Alabama in line with our philosophy of seeking assets with intrinsic value in its acquisitions," Herman said.
The properties -- Renaissance at Galleria, Park at Galleria, Place at Galleria, Overlook at Homewood, Magnolia Park at Homewood, and Wisteria Park -- have benefited from significant improvements since upgrades began in 2002. Over $17 million has gone into improving the properties, with two properties -- Overlook at Homewood and Magnolia Park -- receiving full exterior and interior overhauls completed in winter 2006. The properties feature some of the most luxurious amenities in the Birmingham area.
Collins has partnered with The Lightstone Group in other ventures, including the 672-unit high-rise Marbury Plaza in Washington, D.C. " Lightstone sets the pace for aggressive growth while giving attention to the details of building value. Lightstone brings a lot of things to the table -- their strong reputation in the marketplace, their extensive financial experience... a perfect synergy with Collins' attention to detail on the management side," Parnes said.
"Collins is pleased with its new alliance with CapMark in its financial ventures. Collins is certain CapMark was the right choice," added Herman. "Collins and CapMark are already working closely on pending acquisitions," Parnes remarked.
The Collins Group remains committed to its corporate philosophy: providing quality tenant services by upgrading assets and providing excellent and attentive management.