August 20, 2008

Intercontinental Buys 353-Unit Site for $30M

Globe St.

Intercontinental Buys 353-Unit Site for $30M
By Robert Carr

BLOOMINGTON, MN-Boston-based Intercontinental Real Estate Corp. has added to its $400 million investment fund by purchasing International Village, a 353-unit apartment complex here for $30 million. The nine-building complex at 98th Street and Nicollet Avenue South was sold by the Greenwood Village, CO-based Laramar Group, which bought the property for $20 million in January 2007, sources say. Laramar Management Services LLC will remain the property manager and leasing agent for the property.
The 22-acre complex, built in 1968, is 98% leased. The property includes amenities such as a renovated community room, indoor and outdoor swimming pools and spas, three saunas, fitness center, yoga studio, theater room, business center, game room and fireside lounge. Rents range from $780 to $1,175 per month.
When Laramar purchased the site in January 2007, a company spokeswoman said plans included $750,000 of property improvements, including new exterior painting, landscaping upgrades, clubhouse redecoration and parking lot resurfacing. “It will be a pretty comprehensive internal and external renovation,” the spokeswoman told Also, the company planned to add new amenities, with new entertainment and stadium-style seating, as well as new management and marketing efforts. The company could not be reached to find out if these improvements were made.
Another 15 properties across the country have been purchased with Intercontinental’s US Real Estate Investment Fund LLC, says CFO and COO Paul Nasser. “We currently have more than $400 million of equity raised to date,” he tells “About $375 million has already been invested. We’re focusing on all property types in all the major markets.”
He says this parcel enables the fund to gain a multifamily asset that has a strong reputation. “It has low volatility, people who move there like to stay there,” Nasser says. “It’s also a great infill location, and close to the highways, which is good for an apartment complex.”
In March, the company used the fund to acquire the 514,000-sf Lakeside Commons office center at 980 and 990 Hammond Dr. in Atlanta for $102.8 million. The seller was Rreef, which acquired the property in 1998 from locally based ERE Yarmouth.