Tel Aviv-based Elco Holdings Ltd. unit Elco Landmark Residential has bought a portfolio of 5,600 housing units in the Southeast US for $338.5 million from Birmingham, Alabama-based Colonial Properties Trust. Elco will renovate the properties, expects to finance 20-30% of the acquisition from its own resources, and is in talks with lenders for a non-recourse loan for 65% of the deal. The deal will be closed in stages and completed by the end of the year.
Controlled by chairman Georg Salkind, the company founded Elco Landmark Residential in 2008 to operate in the US market by finding opportunities, mostly residential projects, created by the sub-prime crisis. The latest deal increases the company’s holdings to 15,000 housing units, owned in full or in part, and 20,000 managed properties. Most of the properties are in Georgia, Florida, and Texas.
Elco is also parent to Electra Real Estate that owns seven office buildings in various US cities including Atlanta’s historic Hurt Building that it acquired with Harbor Group International in 2007. They are among several Israeli institutional investors, including Gazit-Globes’ Equity One unit, that have significant investments in Southeast real estate.