Miami-based The Federated Cos. has sold Bayside Village for $18.2 million, less than two years after scooping up the struggling Portland student housing complex.
Federated sold the five-story complex to Chicago-based Blue Vista Capital Management, according to a press release. Federated, a national real estate investment company, bought Bayside Village in December 2010 for $9.2 million. Brian Connell, CEO of Federated, said in the release the company stabilized the property with "value-added management" and overhauled marketing and pricing strategies, which led to a 100% occupancy rate for fall 2011, compared with fall 2010's rate of 45%. The company achieved a 125% internal rate of return for investors, according to the release.
Federated, which also has an office in Boston, acquired the 100-unit building from KeyBank, which had taken it over after its developer, Rockport-based Realty Resources, defaulted on a $20.82 million loan. Bayside Village opened in the fall of 2008 as the state's second private student housing complex.
Federated Cos. has proposed a $30 million mixed-use development in the Bayside neighborhood on 3.25 acres it bought from the city last year for $2.3 million. The company plans to finalize its master plan in the next two or three months and break ground this year.