05-07-07 The Barons Becomes the Latest in a Series of Acquisitions by Silver-McCann Apartment Group II, L.P.

Sunday, July 8, 2007
Boca Raton News
By John JohnstonSilver Capital -- a division of Boca Raton based Silver Companies -- and McCann Realty Partners have added the Barons Apartments in Dallas (Mesquite), TX as the second asset in its latest apartment investment fund, Silver-McCann Apartment Group II, L.P. This is the pairing’s second fund, and in which it expects to acquire an additional $120 million worth of apartment communities.

"The Barons Apartments is an ideal acquisition for our second apartment fund,” said Silver Capital CEO Larry D. Silver. “We were able to attractively leverage this class A community with a long-term fixed rate conduit loan at 5.84 percent," said Silver, adding:

"This is the sixth acquisition that Silver-McCann has made during the last calendar year. While it is a very competitive market for investments, we are very encouraged by the success that we are having accessing apartment acquisitions that meet our funds' objectives."

The 508- unit, garden-style community will be managed by Lincoln Property Company. Built in two phases in 1999 and 2002, the complex is located in the Mesquite sub-market of metropolitan Dallas. The acquisition was funded in part by a 10-year fixed rate loan with a rate originated by Lehman Brothers Bank, FSB.

"We like buying well located, quality communities like The Barons from their original developer about five years after completion when the community is ready for fresh paint, a spruce-up of amenities and a renewed focus on marketing," said John McCann of McCann Realty Partners. "We are just beginning to see real rent growth in some DFW sub markets, including the Mesquite sub market, so we think that the timing of our acquisition of The Barons is just about right."

Silver-McCann Apartment Group, L.P. was organized in April 2005 by McCann Realty Partners, LLC, an apartment investment company, and Silver Capital, LLC, a division of the real estate development and investment firm Silver Companies, to acquire apartment communities in the Mid-Atlantic and Southeast. The initial fund reached its stated objective of acquiring an apartment portfolio valued at approximately $100 million in the first 18 months of the partnership.

Silver-McCann Apartment Group II, L.P. was formed in January 2007 and continues the partnership with the expectation of acquiring $150-$200 million worth of apartment communities over the next two years. Silver-McCann has broadened its geographic scope to include the Dallas, Houston, Austin and San Antonio markets in Texas.

Since 1941, Silver Companies has built a firm with commercial development approaching 11 million sq. ft. and residential site development totaling more than 50,000 units. In addition, the company's private equity division has provided more than $1 billion in capital to builders and developers during the last six years.

In addition to its Boca Raton headquarters, Silver Companies is also co-headquartered in metro Washington, D.C.

Richmond, VA-based McCann Realty Partners, LLC, was started in late 2004.

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