The Winston-Salem Journal ran a story in its June 8 edition highlighting the sale of 15 apartment communities in Forsyth County, and just today (June 20) another two were announced. The June 8 article does a nice job summarizing the many factors that contribute to the spike in transactions – demographics, lifestyle, costs – but one facet of the transactions that they pick up on is something that has been observed over the last year by apartment industry observers: a significant increase in out-of-town buyers of apartments. From the June 8 article:
Yet, there have been six apartment-complex purchases in Forsyth over the past three months, all by out-of-region and out-of-state buyers.
“Investors are trying to find what few pockets of value there are left in the apartment market,” said Mark Vitner, a senior economist for Wells Fargo Securities.
“Prices have been bid up so much in larger markets, such as Charlotte, Raleigh and Nashville, that investors are increasingly looking to markets that have been overlooked and show great potential for growth.
“Winston-Salem and Greensboro are at the top of the list of overlooked markets.”
If you’re wondering what the price points were for the transactions, we did a little “back of the napkin” calculating using the information from the article and some data we have in our membership files and found the following;
Those 15 communities have a total of 2,349 units and the combined total of sales prices was $136,640,000, or $58,169 per unit.
A fairly recent entrant to the Piedmont Triad apartment market is bullish on the region and has decided to invest in another property. According to the Triad Business Journal, Living Well Homes has purchased Hunt’s View Apartments, adding to a portfolio that already includes Ashley Oaks Apartments and Hidden Lakes Apartments. From the article:
Living Well Homes, a Canadian-based company, acquired its third Greensboro apartment community since 2015, buying Hunt’s View Apartments at 3901 Battleground Ave. for $20.5 million, with plans to make $2 million in improvements…
Also mentioned in the article is the purchase of Market Sation Apartments for $15 million by two LLCs managed by Eric Richelson of White Plains, NY. Richelson Management will manage the community.
The Triad Business Journal has a slideshow of the top 10 apartment deals last year. You can check it out here.
From Greystone’s press release:
Greystone, a leading national provider of multifamily and healthcare mortgage loans, today announced it provided $30,500,000 in loans for the acquisition of four multifamily properties in the Piedmont Triad region of North Carolina. The four separate loans were originated by Vincent Langan of Greystone and delivered to Fannie Mae under its Delegated Underwriting and Servicing (DUS®) program.
The loan terms for all four properties include 10-year financing with 30-year amortization, one year interest-only and 80% LTV. Acquired by Varden Capital Properties (VCP), the apartment communities comprise a total 941 units and all offer a range of attractive amenities such as swimming pool, fitness center, clubhouse and tennis courts. The properties in this portfolio include:
- Ashland Apartments in Greensboro, NC
- The Lakes on Meadowood in Greensboro, NC
- Ambercrest Apartments in Winston-Salem, NC
- The Hunt Club Apartments in Winston-Salem, NC
An investment firm managed by Greensboro attorney Marc Isaacson has purchased Swathmore Court Apartments (High Point) from long-time High Point apartment developer/manager Coy Willard’s company. From the Triad Business Journal:
A New York-based real estate investor bought the 104-unit Swathmore Court Apartments in High Point for $5.9 million, according to public record…
The apartments and 6.5-acre property was sold by High Point Holdings III LLC, an entity managed by High Point businessmanCoy Williard Jr. of Williard-Stewart Inc.,according to the deed.
The complex is at least 10 years old and is 95 percent occupied, said Swathmore Courts Apartments representative Susan Cobb.
Swathmore Investors LLC will take on the $4.6 million balance due on the mortgage to Prudential Huntoon Paige Associates LLC, the deed shows. The $5.9 million sale closed on May 1.
From Greystone’s press release:
– Greystone, a real estate investment and development group, today announced the acquisition of Allerton Place Apartments, a 228-unit multifamily property located in Greensboro, NC. The complex is located in the largest city of North Carolina’s robust Piedmont Triad region.
As part of its active acquisitions strategy, Greystone seeks out multifamily assets for its growing owner / operator model, investing in renovation and improved property management to increase value. The ideal real estate acquisition targets for this strategy are of 1980’s vintage – or newer – and over 200 units in size situated in the Southeast, mid-Atlantic and Midwest.
Allerton Place, constructed in 1997, comprises 14 garden-style apartment buildings with an accompanying clubhouse and leasing center. The Greensboro, NC property, purchased from Summit Equities, will transition to new property management provided by Greystone Property Management Corporation, which oversees thousands of residential real estate units in Florida, Indiana, Louisiana, North Carolina and South Carolina.
“We are thrilled to add Allerton Place to our growing portfolio of multifamily properties. This asset serves as the ideal example for how we can add value as part of our unique owner / operator strategy, and we hope to continue investing in this region,” said Bill Guessford, Managing Director of Greystone Acquisitions and Vice President of Greystone Property Management.