CHARLOTTE, NC—Capstone Apartment Partners has arranged the $77.5 million sale of a six-property, 895-unit portfolio located in Charlotte, NC. The off-market transaction represents the largest portfolio sale of 2019 for the Charlotte market and presented a rare acquisition opportunity by its longtime local owner, whose 30+ year ownership of the portfolio created a highly desirable environment for its residents and families.
The buyer, property owner FriedLam Partners, acquired the portfolio. With the portfolio maintained in impeccable condition, the buyer recognized an outstanding opportunity to pick up where the previous owner left off and continue to offer high quality housing options. The buyer has been one of the most active recent acquirers in the Carolinas.
“We see high demand for well-maintained, housing among central infill locations far exceeding market supply across our region; thus, the long-term investment upside can be significant,” said Evan Goldenberg, one of the Principals and Founder of EBEX Holdings. “Due to the growing demographic trends and strong economic growth over the past several years, we continue to invest and focus on the Carolinas and greater Sun Belt.”
“We’re excited to add these deals to our portfolio and look forward to making them great communities, managing them well, and continuing the quality of housing the seller provided throughout their long-term ownership,” said Nathan Friedman, Principal of FriedLam Partners.
The portfolio is comprised of six Charlotte-area apartment communities located throughout various sought-after areas, including NoDa and Plaza Midwood. The Capstone Apartment Partners transaction team was led by Brian Ford, Alex McDermott, and Ron Corrao.
“Our brokerage team was quickly able to pair this portfolio with the right buyer profile for this sizable takedown—one we knew would provide certainty of execution. Apartment investors throughout our region have been able to capitalize on recent market trends and price appreciation, and we see continued opportunities for owners of well-located existing assets for the foreseeable future,” said Ford, the lead broker on the sale.
Charlotte’s explosive growth has led to a sharp increase in demand for apartment homes. Rental rates continue to climb in the metro area despite new multi-family housing communities being added to the market. As of this month, approximately 11,416 rental units were under construction in the Charlotte metro area, but it’s unclear how many of these units will fall within the affordable range upon completion.
“The sale of this Charlotte portfolio demonstrates the continued strong demand for well-located and inviting assets. With continued construction of new Class A properties throughout the region, slightly older existing housing stock is more important to the community than ever,” Ford added.