Company Seeks MF Properties

Spectrum Properties Multifamily Acquisitions, Inc., a newly-formed subsidiary of Charlotte-based Spectrum Properties, wants to purchase multifamily assets in markets located in the Southeast, Mid-Atlantic and Midwest regions of the U.S. According to John Gray, president of Spectrum Properties Multifamily Acquisitions, "We believe that there will be an opportunity to acquire apartments and student housing properties at a substantial discount to replacement value during the next few years." The subsidiary plans to own and manage $200-$500 million in real estate assets. Mr. Gray's investment rationale is based on acquiring apartment and student housing assets at a substantial discount to replacement cost due, in part, to expected refinancing problems on maturing loans as well as assets that were underwritten with over-aggressive assumptions. "Our objective is to purchase properties at very attractive pricing, manage them intensively during a three to seven year holding period and then sell them for a substantial profit that produces a handsome return for our investors," he said. The new company is looking to purchase class A, B and C apartments; student housing properties that are located near thriving universities and garden, mid-rise and high-rise property types. It has a preference for portfolios as opposed to single properties.