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DRA Advisors does $1.8b apartment deal with Lone Star
Apartment living agreed with the people at DRA Advisors. But everyone has a price. For DRA and Bell Partners, its joint venture colleague, it was $1.8 billion, the price that Lone Star Funds is dishing out for 20,000-plus units in 64 apartment communities scattered across the United States.
The 64 properties sold were originally part of a joint venture purchase made by DRA and Bell Partners in 2008 that encompassed 86 apartment communities with 25,684 apartments. In the years following the original acquisition, DRA and Bell sold 22 communities to other purchasers, with Lone Star ultimately buying the remaining 64 apartment communities in the portfolio.
DRA president David Luski says the portfolio generated strong cash yields for his firm and its investors throughout the hold period. The returns were “well ahead of expectations,” according to Luski.
While DRA has liquidated its position, Bell Partners will continue to manage the 64 communi