Super Size - Birmingham Bets
December 27, 2006
Real-estate investor David Lichtenstein's Lightstone Group has made its second big apartment purchase in recent months in the Birmingham, Ala., area.
The Lakewood, N.J., property company paid closely held Colonial Properties Trust $163 million for three apartment complexes consisting of 2,284 units. In a deal three months ago, Lightstone paid $140 million for 2,331 garden apartments in the same locale.
Why the big 'Bama bet? Mr. Lichtenstein said several area municipalities have thrown up roadblocks to developers, putting a constraint on new supply. He also cited population growth and relatively high home prices for why he is bullish.
In the last year, Lightstone has been a net buyer of real estate nationwide, said Mr. Lichtenstein. It has made $1.2 billion in purchases, mainly apartments and shopping centers, while selling about $1 billion in property.
