The Preiss Company Acquires First Florida Property for $36.3 Million
Monday July 01, 2013
Gainesville, Fla. — The Preiss Company has acquired the 240-unit, 770-bed Canopy Apartments, a student complex less than one mile from The University of Florida for $36.25 million from a private investment group. Comprised of five, three-story buildings and built in 2009, it is Preiss' sixth acquisition in the past 12 months and brings to 32 the number of student housing properties owned by the company.
The transaction was brokered by HFF, led by managing directors Brian Kelly and Troy Manson and senior managing director Manny de Zárraga. In addition, HFFS, the company's capital markets services division, led by managing directors Timothy Joyce and Stephen Skok, arranged a $26.4 million, 12-year, 4.5 percent fixed-rate mortgage loan with M&T Realty Capital Corporation.
"This acquisition marks another important step in our national expansion program," says John Preiss, chief investment officer, The Preiss Company. "This is our first Florida property and extends our portfolio from the Sunshine State along the Eastern corridor to Pennsylvania and complements our growing portfolio in the Midwest and Southwest.
The Canopy is our sixth acquisition/development/financing transaction in the past 12 months, totaling more than $350 million in activity. We have an aggressive appetite for additional acquisition and development, as well as to expand our third-party management."
Preiss noted that the company acquired the four-year-old property below replacement cost. "With interest at historic low rates and attractive real estate pricing in multiple markets, we have an extensive pipeline and currently are well along in negotiations on a number of properties," Preiss says.
"We see continued consolidation in the industry by larger companies like Preiss who have access to capital, sophisticated operating systems, and the ability to achieve immediate economies of scale. The current state of the industry matches up well with our growth strategy of acquisitions, development and third-party management."