Little Rock, AR (April 5, 2012) – Pete Hornibrook, a Principal with Rector Phillips Morse Inc./CORFAC International, announced today that Senior Vice President ofRector Phillips Morse (RPM) Rick Freeling, SIOR, has sold the Forest Place Apartments for $17.6 million.
Freeling, who called the sale price “either a record for Little Rock apartments or certainly the highest gross price in the market that I can recall,” was the only broker involved in the transaction.The seller was Forest Place Joint Venture, a Little Rock investment group, and the buyers were two entities associated with Kansas City, MO-based Maxus Realty Trust. The new owners of Forest Place are Forest Place TIC I LLC, based in Missouri and Forest Place TIC II, LLC based in Delaware.Located at 1421 North University Avenue in Little Rock, Forest Place is comprised of 256 apartment homes in five buildings that are two and three stories. The apartments range from approximately 566 square feet in one-bedrooms to approximately 1,879 square feet in three-bedroom apartments. Current rental rates for the one, two and three bedroom apartment homes are $625 to $1,350 a month.The first phase of Forest Place was completed in 1974 and the second phase in 1983. The new owners plan to install new roofs on the buildings and perform other renovations as needed. The apartment community is a block and a half from Cantrell Road, which is a major East/West Road in Little Rock, while University Avenue is a major North/South road in the city. The apartments are about three miles from the University of Arkansas at Little Rock. On the market for nearly 10 months, the $17.6 million sale amounts to an average of $68,750 per apartment home, according to Freeling. Freeling specializes in multifamily, industrial and some office brokerage.
Rector Phillips Morse was one of the limited partners in Forest Place (RPM owned 21.29%) and prior to the sale they were able to move its shares into a 1031 Exchange vehicle, which enables investors to reinvest money into another property investment of equal or greater value then the immediate-past property investment and defer potential income tax. Investors in 1031 Exchanges have 45 days to identify a new property for purchase and the RPM fund has approximately $1.4 million (unleveraged) to invest in multifamily, retail or office properties, said Freeling – and they are actively looking for a replacement property investment.
About Rector Phillips Morse Inc./CORFAC International
Rector Phillips Morse Inc./CORFAC International (RPM) is a multi-faceted and leading Arkansas real estate company that serves commercial property owners, investors, institutions and tenants with brokerage and property management services, including office, industrial, retail, land and multifamily property types. Founded in 1955, RPM also has a commercial auction division and sister company that serves the residential real estate market (Coldwell Banker Rector Phillips Morse). For more information call 501.664.7807 or visit www.rpmrealty.com.
About CORFAC International
CORFAC International (Corporate Facility Advisors) is one of the largest commercial real estate services organizations in the world. Founded in 1989, U.S.-based CORFAC is comprised of privately held entrepreneurial firms with expertise in office, industrial and retail real estate leasing and investment sales, multifamily property acquisitions and dispositions, property management and corporate services in North America, with coverage in South America provided by Panama-based Latin American Corporate Property Services. A Principal Member of FIABCI – the International Real Estate Federation with global affiliates in Europe and Asia, CORFAC International offers commercial real estate services with market reach in 65 countries worldwide. In recent years, CORFAC firms have averaged 10,000 completed transactions annually encompassing nearly 1 billion square feet and valued at more than $16 billion. For more information on CORFAC, contact 954-923-6160 or visit www.corfac.com.
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