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News release

ATLANTA

Robust Rental Demand and Favorable Lending Environment Propels Southeast Multifamily Sector to Highest Transaction Levels Reflective of 2005

Jones Lang LaSalle completes $1+ billion in multifamily transactions in the Southeast in 2012


ATLANTA, Jan. 22, 2013 — Overcoming significant hurdles following the financial crisis and a regional construction boom, the multifamily sector in the Southeast is now poised to set the highest level of sales transactions since 2005. Vacancy rates are at their lowest point since early 2008 and rents have experienced consistent gains each quarter since 2010. It’s a perfect storm that’s put Jones Lang LaSalle’s Southeast Multifamily experts on pace to have closed nearly $1.2 billion in sales during 2012. Led by Managing Directors Derrick Bloom and David Gutting, the team’s robust roster of sales included 38 single asset transactions, and seven equity raises, encompassing 16,000 units throughout Alabama, Georgia, Tennessee, Florida and the Carolina’s.

“Robust rental demand and the significant decline in homeownership have kept multifamily demand brisk for 2012,” said Bloom. “2012 national multifamily sales well surpassed 2011 levels, with velocity only 10.0 percent below 2005, and the Southeast is echoing this growth.”

The firms top three Southeast Multifamily deals completed thus far in 2012 include:

  • Lehman Portfolio in Nashville, Tennessee, that encompassed 1,593 units, and was purchased by Harbor Group for $130,650,000.
  • Post Biltmore in Atlanta, GA, that encompassed, that encompassed 276-units, and was purchased by Mesirow Financial.
  • Eleven North in Nashville, TN, that encompassed 302 units and was purchased by Mesirow for $58,750,000

Gutting added, “We continually seek to deliver value to our clients, by prioritizing our business needs to meet their end goal of divesting their assets with competitive pricing and low cap rates. Our global reach, coupled with our local insights, led us to where we are today, with more than a billion dollars in transactions under our belt. While economic growth is anticipated to continue at a slow and steady pace over the next 12 months, the economic picture is expected to brighten considerably.”

Jones Lane LaSalle’s Southeast Multifamily Investment Sales group has sold 9,901 units in multifamily property totalling more than $1.07 billion in sales during 2012. The team comprises 14 experienced real estate professionals who specialize in the sale and financing of multifamily property in Georgia, Tennessee, North Carolina, South Carolina, Alabama, Kentucky and Mississippi. In addition, the team works closely with the Real Estate Investment Banking experts to source both debt and equity and the firm’s acquisition of Primary Capital allows it to operate as a Freddie Mac Program Plus© Seller/Servicer and includes a $2 billion loan servicing platform.

Jones Lang LaSalle Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2011 alone, Jones Lang LaSalle Capital Markets completed $60 billion in investment sale and debt and equity transactions globally. The firm’s dealmakers completed $52 billion in global investment sales and buy-side transactions, equating to nearly $216 million of investment trades completed every working day around the globe. In the United States, Jones Lang LaSalle grew its total Capital Markets volumes by 122 percent in 2011 and is quickly gaining market share across all property types. The firm’s Capital Markets team comprises more than 1,200 specialists, operating all over the globe.

For more news, videos and research resources on Jones Lang LaSalle, please visit the firm’s U.S. media center Web page. Bookmark it here: http://www.us.am.joneslanglasalle.com/UnitedStates/EN-US/Pages/News.aspx

About Jones Lang LaSalle
Jones Lang LaSalle (NYSE: JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2011 global revenue of $3.6 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 2.1 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $47 billion of assets under management. For further information, please visit www.joneslanglasalle.com.