Aggressive Expansion in N.J., Pa., Md., Nearly Doubles Equity Firm’s Portfolio
BRICK, N.J. – January 26, 2012 – (RealEstateRama) — With the January acquisition of Barclay Arms in Atlantic City, N.J., private equity real estate group Tryko Partners, LLC, marked a 12-month period of aggressive growth that nearly doubled its multifamily portfolio and substantially grew its skilled nursing holdings. The Brick-based firm has added more than 1,800 residential units and 200 nursing home beds, with another 680 housing units under contract to close during the first quarter of 2012.
Tryko Partners’ latest purchase includes 75 affordable housing apartments. Located at 814 N. Virginia Ave., Barclay Arms offers two-, three-, and four-bedroom, garden-style residences, and maintains occupancy in the high 90 percent range. Tryko Partners bought the property from Max Gurwicz Enterprises in an off-market sale.
According to Uri Kahanow, Tryko’s director of acquisitions, the addition of Barclay Arms increases the company’s local market share. “We own and operate a similar-size complex, Magellen Manor, which sits directly across the street,” he noted. “By sharing services, such as security, between the two buildings we will be able to consolidate some operating expenses. We also plan to upgrade the Barclay Arms’ utilities in the near term, to achieve additional cost savings through energy efficiency.”
Capitalizing on Opportunity According to Kahanow, Tryko Partners’ recent acquisition boom can be attributed to a number of factors. Among them, he noted that his firm has observed a clear shift in seller expectations. “We have seen a lot of good deals come onto the market,” he said. “It seems that sellers are generally more realistic today than they were immediately following the market crash. That said, we are grateful to have been able to take advantage of several opportunities that fit our firm’s strategy and focus.”
Chad Buchanan, Tryko’s vice president of investments, added: “Companies with a strong track record can tap into extremely favorable financing terms and cap rates today. We, fortunately, have been able to forge relationships with a number of institutions in the past year.”
Buchanan added that equity partnerships have been key in several transactions as well. “Over the past few months, in particular, we have brought partners in on select deals,” he explained. “While it helps that we could close deals on our own, we believe that this approach is more conducive to long-term expansion.”
Targeted Growth Tryko Partners’ recent multifamily acquisitions all have taken place in New Jersey (Barclay Arms in Atlantic City), Pennsylvania (Kearsley Apartments and Kearsley Square in Philadelphia, Fox Hill Apartments in Monroeville, Harrisburg Park in Harrisburg, and a HUD portfolio spanning Pittsburgh and New Castle) and Maryland (Loch Raven in Baltimore and Pemberton Manor in Salisbury). Its skilled nursing portfolio has expanded along the northeast corridor (Kearsley Long Term Care in Philadelphia and Coyne Healthcare Center in Rockland, Mass.). Its pending purchases fall within this targeted geographic area as well.
“For us, a successful acquisition begins with an understanding of an asset’s local market and an ability to see its full potential,” Kahanow said. “While some REITs and larger funds might shy away from value-add opportunities today, we look at properties that might require more than cosmetic improvements. We are aggressive operators. We focus on making our properties operate efficiently, and we work hard to position and market them effectively.”
Established in 1989, Tryko Partners today maintains a 4,300-unit residential portfolio. The organization purchases multifamily properties, healthcare facilities, and tax liens throughout the Northeast – including Pennsylvania, New Jersey, New York, Maryland and Delaware – and the greater Chicago market in the Midwest.
Christine Ziomek / chris (at) caryl (dot) com / (201) 796-7788 / @carylcomm