Aragon deploys PE funds to purchase USD100m apartment portfolio
Aragon Holdings has expanded into two new markets with the acquisition of three properties in Atlanta and Denver, deploying approximately half of the USD52m it raised in its recently-closed private equity fund, Aragon Multi-Family Cash Flow Fund II.
The balance of the USD100m acquisition was provided by Freddie Mac.
In the Atlanta market, the company purchased Holland Park, a 496-unit property in Lawrenceville, and Azalea Springs, a 232-unit property in Marietta.
The Denver purchase was Hampden Heights, a 376-unit property located just north of the Denver Tech Center.
These acquisitions increase Aragon's multi-family portfolio to over 5,000 apartment units, all acquired in the past four years. During 2012, the company purchased over USD200m of multi-family assets in six states.
Equity for the three transactions was provided by Aragon Multi-Family Cash Flow Fund II, a private equity fund formed to facilitate the company's acquisition activity and to produce monthly cash flow distributions to investors. Like its predecessor Aragon Multi-Family Cash Flow Fund I, the latest fund targets 10 per cent annual, tax deferred, cash-on-cash returns, paid monthly to investors.
Larry Clark (pictured), president of Aragon Holdings, says Atlanta and Denver are new markets for the company, but they fit well with Aragon's model of acquiring properties in areas with strong job markets and robust demand for multi-family housing.
"We continue to identify attractive acquisition opportunities that will enable us to commit the remaining portion of Fund II, and we have already been approached by investors and institutions asking us to form a Fund III," he adds.
Aragon Holdings is a real estate investment and fund management company based in Beverly Hills, California, that acquires and manages income-producing assets throughout the US on behalf of high net worth investors.