Savills LLC manages sale and recap of portfolio

Savills LLC has acted as the financial advisor in connection with the workout, sale and recapitalization of a distressed 4,681 unit apartment portfolio located in Ohio, Pennsylvania and Indiana. The portfolio includes: Leland Point - Pittsburgh, Pa., 1057 units; Cedarwood Village and Dorchester Village - Cleveland, Oh., 950 units; Park Valley, Ferncrest, Renata and Bavarian Woods - Cincinnati, Oh., 803 units; Abbey Run, Georgetown Village, Miracle Manor, Sunnydale and Hunters Ridge - Toledo, Oh, 1099 units; and Coppertree - Speedway, Ind., 772 units. Savills served as the financial advisor and was responsible for advising the existing borrowers and Apollo Property Management in the workout and modification of existing portfolio financing and transfer of ownership to affiliates of Square Mile Capital, The Kushner Cos. and Apollo Property Management. At closing, management of the properties was assumed by Apollo. Acquired by the existing ownership group in 2006 and 2007 and capitalized with $172 million of debt and equity, occupancy at the defaulted properties had dropped to under 75% and the portfolio required a major infusion of new equity capital to reduce debt to supportable levels and complete required renovations. The new ownership group has replaced management across the portfolio and plans to complete a major capital improvement and repositioning program to dramatically increase occupancy levels and performance at the properties. "Savills' capital markets capabilities, combined with its depth of workout and restructuring experience, were critical in completing this highly complex transaction," said Jeffrey Baker, executive managing director of Savills LLC. "We are proud to have facilitated the turnaround of this substantial portfolio of distressed apartment communities."