Capri Capital Partners, LLC Enters into Joint Venture to Purchase Whiteco Residential Operating Portfolio
AUGUST 29, 2007 - CHICAGO, IL - Capri Capital Partners, LLC (“Capri”), with a team led by Dan Goelz, Partner, has announced the acquisition of the majority of the Whiteco Residential (“Whiteco”) operating portfolio as a result of a newly formed joint venture between Capri, Capri Select Income II (“CSI II” or “the Fund”) and an undisclosed institutional investor.
The $325-million transaction consists of ten garden style multifamily properties totaling 2,377 multifamily units located in Southern California, Denver, Dallas, Houston, Las Vegas and Orlando. All of the multifamily properties are in locations that have excellent demographics, and are in high growth job markets that currently exhibit favorable rental characteristics such as low vacancy rates. This transaction consists of two development sites, including an option to acquire a third development site that in total can be developed into an additional 700 units. The joint venture will retain Whiteco Residential to perform the management and leasing duties as well as to implement the value-add opportunities identified within the portfolio.
“This is the single most significant transaction we've completed this year and is the result of long standing relationships with Whiteco, as well as an emerging relationship with a major institutional investor, who we joint ventured with,” says Quintin E. Primo III, Chairman and Chief Executive Officer of Capri and Executive Portfolio Manager of the Fund. “In addition, we expect the six metropolitan markets in which Capri is investing in this transaction to benefit from a quickly growing Latino and Asian demographic over the next ten years.”
“This was a non-competitive bid and the reason we selected Capri was because of a long standing and successful relationship over the past decade with Capri and Whiteco,” says Matthew Chambers, Chief Financial Officer and Executive Vice President of Development of White / Peterman Properties, Inc.
“The transaction with Whiteco Residential was exceptionally smooth and the relationship between the firms are stronger as a result,” says Dan Goelz, Partner.
About CSI II
In March 2005, Capri announced that it had raised $312.5 million from twenty institutional investors, including several of the nation's largest pension funds, in forming CSI II. The Fund is organized to provide mezzanine debt and structured equity capital to leading real estate developers and owners, the majority of which will be structured as mezzanine loans or as preferred equity where the Fund will have a secured and preferential position in property cash flow and value relative to common equity. Capri's investment in the Whiteco portfolio will be augmented with the use of conservative third-party leverage.
About Capri Capital Partners, LLC
Capri Capital Partners LLC is an institutional real estate investment advisory firm, investing and managing commercial real estate properties and portfolios since 1992. Headquartered in Chicago, Illinois, Capri offers a broad spectrum of equity and debt products to its customers - through separate account and commingled fund vehicles - that include equity, debt and securities investment management services. Diversified assets managed on behalf of its pension fund and other institutional clients with assets under management totaling $4 billion as of July 31, 2007. For more information, please call
312-573-5275 or visit the company's website www.capricapital.com.
About Whiteco
Whiteco Residential, LLC is a private national multifamily development company focusing on the development, construction and operation of institutional quality apartment communities in cities that maintain long-term employment and population growth.
Capri Capital Partners, LLC expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in their expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.
This announcement does not constitute an offer to sell, or a solicitation of an offer to buy any security relating to Capri Capital Partners, LLC or any of their funds. Any offer or solicitation may be made only through the delivery of a definitive Private Offering Memorandum and all information contained herein is qualified in its entirety by such Memorandum.
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