It's a lot of money, $500 million. It almost sounds like a federal government appropriation but, actually, it's the value of property that changed hands in a single real estate transaction.
Irvine-based J. D. Stout Co.--principals, James D. Stout, Michael Shatsky and Norman Nemrow--began buying apartment properties in 1982, and by late 1984, owned 52 complexes totaling more than 10,000 units in 15 states, half in prime California market areas.
The vast majority of them have been sold to a syndicate whose general partner is VMS Realty of Chicago. Stout said the full real estate value is about $500 million and that he believes the transaction may be the largest ever reported in a single apartment-house deal.
The financial partner behind each partner was Beverly Hills Savings & Loan Assn.
The Stout firm formed its own property management firm, Five Star Management Co., which reported that all the properties have near-100% occupancy and all capital improvements are completed. Five Star will manage the properties for the new owners.