Post Investment Group Closes Another Multi-Family Acquisition

CARROLLTON, Texas, July 7  /PRNewswire/ -- Post Investment Group, a Los Angeles-based opportunistic real estate investment company, today announced their second multi-family purchase in as many weeks as the firm continues to expand their acquisition program.  The latest transaction was purchased from Denver-based AIMCO (NYSE:AIV); the purchase price was not disclosed.

Post acquired Greentree Apartments, a 365 unit Class B multi-family asset through an on market transaction brokered by the local office of Hendricks & Partners.  The continued deterioration of the real estate investment environment and the significant bid-ask differential derived from unrealistic sellers has resulted in the need for full marketing programs as a means of adjusting residual expectations.  This is in stark contrast to the investment markets throughout the first part of this decade, where financial engineering alternatives created an extremely competitive bidding situation and artificially inflated an asset's intrinsic value.  In reference to their latest acquisition, the company commented that they by no means believe this is the bottom of the market; values will continue to decline through 2010.  It is rather their intention to purchase quality, stable investments that can be held through the trough and into the subsequent rebound while simultaneously realizing strong cash flow from operations.  The Greentree transaction is a slight departure from Post's projected acquisition program moving forward, though Jason Post, President of Post stated, "Our firm still likes the solid fundamentals and yield metrics associated with this class of investment, though we like to see updated external improvements that substantially extend useful life and effectively age-up the vintage.  This is frequently associated with items deemed cost prohibitive or that exhibit a declining capital return, such as hardi-plank siding, systems upgrades and other large cost, low return enhancements.  It has long been Post's investment strategy to operate, and divest, of holdings that are substantially devoid of deferred maintenance, thus the importance of such renovations being completed prior to purchase within this class."

Though this is Post's second multi-family acquisition in the past two weeks it is only their second purchase in the past 12 months.  Even as most would-be sellers remain on the sidelines hoping for a return to normalcy, others are either motivated or required to offload.  Jack Ehrman, Principal of Post, expands on that theory, adding "Post is almost exclusively targeting real estate institutions, such as REIT's, that do not need to meet residual return hurdles nor surmount high leverage obstacles.  We have found that these operators are instead looking to hedge near term debt maturities or expand cash positions, which are the driving forces behind their divestiture programs.  Therefore, the primary residual value is dependant not on price but certainty of close ... something we can accommodate in this market."

Post anticipates acquiring approximately $200 million in capitalized real estate holdings over the next 18 months.  Greentree was purchased in a joint venture with New York-based NDC Capital Partners with Fannie Mae financing through Arbor Commercial Mortgage, also of New York.

http://www.postinvestmentgroup.com/ 

DATASOURCE: Post Investment Group Inc.



CONTACT:  Jack Ehrman of Post Investment Group, [phone]



Web Site:  http://www.postinvestmentgroup.com/ 

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