GLOBAL - AREA Property Partners has acquired a multi-family portfolio in Texas totalling nine properties and 2,589 units for an undisclosed sum.
The properties are split up, with five of them being in Dallas/Fort Worth, three in Houston and one in San Antonio.
Richard Mack, chief executive for AREA's North American operations, said: "We liked the fact the portfolio was not heavily marketed and it was offered to a limited number of buyers that could close quickly."
AREA acquired the properties in a joint venture with Wood Partners.
AREA sees an opportunity to improve on the income being produced by the portfolio.
Mack said: "The previous management was more interested in maximising the occupancy of the property and not maximising the revenue."
This was reflected by the portfolio had an overall occupancy in the mid-90s range, he said, but the rents in the property were anywhere from 3% to 15% below market rents.
Mack said the properties in the portfolio could accommodate rent increases in the future.
"These properties are located in markets where there is high job and population growth, which could lead to them producing more income in the future," he added.
AREA is expecting to achieve a double-digit cash return for its investment in the portfolio.
The real estate manager said the properties in the portfolio ranged in quality from B+ to A, based partly on the fact the complexes were built between 1997 and 2007.
AREA bought the apartment portfolio for its commingled fund, AREA Value Enhancement Fund VII.
The deal is the second major transaction the commingled has been used for in recent months. The other was a $51m (€38.6m) deal to buy three Chicago area hotels.