Town & Country buyer sells off 16 apartment sites

December 30, 2006|By Lorraine Mirabella | Lorraine Mirabella,Sun reporter

The group that acquired Baltimore-based apartment building owner Town & Country Trust after a fierce bidding war earlier this year said yesterday that it had sold 16 of the former Town & Country properties- including nine in the Baltimore area - for $677.4 million.

Morgan Stanley Real Estate, Onex Real Estate and Sawyer Realty Holdings LLC said they sold the apartment buildings in three separate transactions to undisclosed buyers.

In the Baltimore region, five properties with 3,191 units were sold to one buyer for $377.1 million and four properties with 1,588 units for $166.3 million to another, the companies said.

In February, Town & Country had accepted a buyout offer of $1.4 billion, or $40.20 a share, from a joint venture of Morgan Stanley, Onex and Sawyer, known as Magazine Acquisition. The per-share price was 18.6 percent more than the $33.90 a share Magazine originally agreed to pay in December 2005, before rival suitors emerged with higher offers.

The deals announced yesterday also included seven apartment complexes with 2,073 units in Pennsylvania, which were acquired by a private real estate company for $134 million.

The bidding war had sent shares of Town & Country up as much as 38 percent over the price Magazine agreed to pay in December 2005.

Magazine had been one of three bidders vying for the company, which owned 39 apartment complexes with 13,300 units in the Mid-Atlantic, including 18 in the Baltimore area. The keen interest in Town & Country's apartments reflected investors' appetite for owning multifamily properties and the strong demand for entry-level housing, particularly in the Mid-Atlantic, analysts had said.

The Baltimore complexes that were sold include: Seneca Bay in Middle River, Willow Lake in Laurel, Hollows in Columbia and Woodhill in Glen Burnie in one deal and Tall Oaks in Laurel, Howard Crossing in Ellicott City, Ridgeview in Rosedale, Eagles Walk in White Marsh and Steeplechase in Largo in the other deal.

A Morgan Stanley spokesperson would not comment further on the transaction yesterday.

Baltimore Sun Articles
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.