April 2008
Thiemann Real Estate's portfolio grows with addition of Valley Park apartments

St. Louis Business Journal

Thiemann Real Estate recently purchased a Valley Park apartment complex for more than $14 million, boosting the value of its apartment portfolio past the $100 million mark.

The real estate company, led by David Thiemann, closed on the purchase of the 174-unit Park Commons Apartments at 600 Park Commons Ct. on April 4 for $14.23 million. With the deal, Thiemann has amassed an apartment portfolio exceeding 1,500 units in Missouri, Illinois and Indiana, doubling his portfolio in the last year alone. Thiemann said he is actively looking to expand further in the Midwest.

This is the second acquisition so far this year for Thiemann Real Estate. Thiemann acquired the 226-unit Leisure Living Apartments in Evansville, Ind., for an estimated $18 million.

Thiemann said the looming recession and inflation are making renting more attractive, thereby increasing the value of multi-family properties. "Long-term, there is always a demand for well-maintained rental housing," Thiemann said. "I think this will increase over the next few years."

The seller of the Park Commons Apartments was a partnership controlled by Earl Swink, who bought the property in 2001 for $11.2 million.

Ken Aston of Hendricks & Partners, which specializes in multi-family properties, was the listing agent and represented the buyer. Aston said Park Commons' high occupancy rate -- 95 percent -- and a variety of amenities made the complex an attractive property.

Aston said the level of activity for multi-family properties has been steady so far this year. "It's busy," Aston said. "We're very active."

First quarter sales statistics are not yet available, but multi-family sales in St. Louis declined the last two quarters of 2007. In the fourth quarter of 2007, sales volume dropped to $29 million in the St. Louis area, according to New York-based research group Real Capital Analytics. That's the lowest quarter sales volume for multi-family investment properties since the second quarter of 2004, when sales volume decreased to $15 million.