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Thursday, May 31, 2007

North Pointe apartment towers change hands

By STAN BULLARD11:50 am, May 31, 2007

Associated Estates Realty Corp. (NYSE: AEC) in Richmond Heights has sold North Pointe, a massive apartment complex in two, 22-story towers in Euclid, to K&D Group of Willoughby.

The 949-unit North Pointe is best known by its former name, the Watergate Apartments. Neither party disclosed terms of the transaction, although Associated Estates said it sold the property for a cap rate of 4.5%, an industry measure that compares a property’s income-producing revenue and cost.

Doug Price, a partner in K&D with Karen Harrison, said K&D bought North Pointe because it owns adjoining high-rise properties, such as the 1,100-unit Harbor Town apartment complex.
“To me, it’s the premiere building on Lake Shore (Boulevard),” Mr. Price said in an interview this morning. He noted he had looked at the building when Associated Estates previously offered it for sale but passed because it needed so many physical improvements.

Associated Estates since has spent heavily to upgrade heating and cooling systems and put $12 million into repairing the parking garage serving the 1971-vintage complex, Mr. Price said. So, he noted, “We have the fun cosmetic stuff to do.” He said K&D plans to spend at least $3 million on redoing hallways and even painting the exterior of the buildings.

The complex has an 11% vacancy rate, which Mr. Price expects K&D to reduce.John Shannon, Associated Estates senior vice president of operations, said the sale is part of the real estate investment trust’s plan to reduce its Midwest exposure.Associated Estates is an owner or partner in 98 properties in nine states, comprising 19,701 units.

Thursday, May 24, 2007

Fairlawn office site’s proximity to Akron market sells Ironwood

Ironwood Development Co. has acquired a home of its own and an investment property by buying the office building at 2820 W. Market St. in Fairlawn from a partnership led by Munsell Realty Advisors of Beachwood.

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Thursday, May 10, 2007

Local market avoids major fall via Crain's Cleveland Article by D. Prizinsky

Home prices dip but area sidesteps extremes

By DAVID PRIZINSKY6:00 am, May 7, 2007

Although the area’s real estate brokers and agents aren’t happy about the state of the local housing market, they say the region has avoided the big downturns that have hurt some parts of the country.
Some in the business aren’t looking for a significant improvement until next year when the expectations of buyers and sellers converge in the residential sector, which began to turn sluggish last year after a strong 2005.

Agents and brokers here say that, along with a sluggish economy, media reports of the bursting housing bubble have distorted some perceptions of current conditions. Sellers have been holding out for higher prices, while buyers are encouraged by the bad press to wait for a deal too good to be true.

Sellers in the fourth quarter last year in Cuyahoga County were getting roughly 95% of the asking price, according to the Northern Ohio Regional Multiple Listing Service. The MLS is forecasting some improvement in prices this year.
“We are in a slight dip right now,” said Tom Bier, a housing expert at Cleveland State University. “I expect the market this year will be down again a little.”

Wednesday, May 02, 2007

Mich. firm buys Westlake apartments ~ Article via Crain's Cleveland Business

By STAN BULLARD1:13 pm, May 2, 2007

Hayman Co., a Troy, Mich., real estate company, is the new owner of the Sturbridge Square apartments in Westlake, according to Holliday Fenoglio Fowler LP of Chicago, which represented the seller in the transaction.
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Cuyahoga County land records show Hayman paid $20.1 million for the 270-unit apartment complex on Detroit Road near Crocker Road. The complex is 97% occupied, Mathew Lawton, a Holliday Fenoglio senior managing director, said in a news release.

The prior owner paid $14.8 million for the complex in June 1999, according to land records.The seller was Sturbridge Square Apartments LLC, which was formed by UBS Global Asset Management of Hartford, Conn., which manages real estate investments for multiple clients, Holliday Fenoglio said.

Hayman owns and manages commercial properties for itself and for outside clients, according to its web site.

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