Legacy Capital Partners Adds to Their 2020 Disposition Activity
CLEVELAND, Aug. 18, 2020 /PRNewswire/ -- Despite the uncertainty that COVID-19 has put on the global economy and the commercial real estate market, Legacy Capital Partners ("Legacy"), based in Cleveland, OH, continues to add to their list of successful dispositions in 2020. On August 6th Legacy exited their investment in a two-property portfolio in the greater Atlanta MSA. The sale increases the firm's 2020 disposition activity to six (6) assets (1,353 units), totaling $133.6 million.
In the 3rd quarter of 2016 Legacy began discussions with its Atlanta-based operating partner to recapitalize their original joint venture partner. The joint venture partner wanted to exit the investment and Legacy's operating partner felt there was still a tremendous amount of value to be created. In December 2016, Legacy made its investment to facilitate the recapitalization allowing its operating partner to retain ownership and have more time to maximize the portfolio's value. During Legacy's hold period, the joint venture completed renovations to the clubhouses, common areas, amenities, and unit interiors.
At the beginning of 2020 Legacy and its operating partner identified the portfolio as a likely sale in late 1st quarter/early 2nd quarter, targeting a sale price well above the original underwriting. Due to the uncertainties in the capital markets and concerns surrounding execution risk during the pandemic, the joint venture agreed to delay the sales process until the markets stabilized. A buyer, however, was identified in April at the targeted price, and the sale closed as agreed in early August.
"This is a fantastic result for our Fund V investors," said David St. Pierre, Legacy's managing director and co-founder. "Back in 2016 we recognized the potential our operating partner saw in continuing to hold this investment and they did an excellent job executing the business plan. Fund V's investment represented approximately 10% of the Fund and the sale returned more than 25% of the Fund's committed capital."
Legacy Capital Partners Fund V closed and made its first two investments in April 2016. 97.0% of the Fund's committed capital was deployed in 13 investments (18 assets). The Fund's final investment was made in February 2018. With this sale, Fund V has successfully exited six of its 18 assets and has identified two additional assets as potential 2020 dispositions.
About Legacy Capital Partners:
Legacy Capital Partners is a Cleveland-based real estate private equity firm founded in 2004 by Mitchell C. Schneider and David B. St. Pierre. Since its inception, Legacy has invested in 72 properties with a total cost basis of $1.99 billion. Since October 2009 Legacy has invested exclusively in for-rent multifamily properties and is actively deploying capital out of its seventh Fund (Fund VII). For more information about Legacy Capital Partners, visit www.lcp1.com.
CONTACT: Helen Qin, [email protected]
SOURCE Legacy Capital Partners
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