CIM Group Acquires Multifamily Complex for $506 Million

Paul, Weiss advised certain funds sponsored by CIM Group, LLC and multiple third-party co-investors in the acquisition of five multifamily towers in Alexandria, Virginia for an aggregate purchase price of $506 million. It is the largest multifamily transaction of 2020, The Wall Street Journal reported. The acquisition was financed with a $347 million LIBOR-based loan from Freddie Mac. CIM signed a contract to buy the complex prior to the COVID-pandemic from a joint venture of the original developers and owners, Snell Properties and Caruthers Properties, exercised a termination right pursuant to the contract at the outset of the pandemic and subsequently entered into a new contract with the seller at a substantially lower price.

The Paul, Weiss team included real estate partner Harris Freidus and counsel Karla Booth; corporate partner Manuel Frey; tax partner David Mayo and counsel Mashiho Yuasa; and international trade counsel Richard Elliott.