New York Group Purchases Bridford West in Greensboro

In December a group out of Uniondale, New York purchased Bridford West Apartments in Greensboro. From the Triad Business Journal:

A realty group based on Long Island has purchased a gated apartment community in the Triad for $36 million, according to Guilford County public records…

Built in three phases beginning in 2012, the 264-unit upscale community sits on 20 acres at 600 Eagle Road in southwest Greensboro, just off Bridford Parkway. The complex has 11 apartment buildings and a clubhouse. Amenities include a fitness center, saltwater pool, dog park, car wash and grilling stations.

That purchase price puts the transaction at $136,364 per door and continues a trend of apartment communities being purchased by non-local companies. The seller bought Bridford West in 2015 for $33.2 million.

Colorado Company Purchases Triad Apartment Portfolio

From the Triad Business Journal:

Interurban Properties of Centennial, Colo., has purchased Loxley Place Apartments in Winston-Salem for $16.25 million from Graycliff Capital of Greenville. Loxley Place is at 3736 Kings Row in the Mt. Tabor neighborhood, just north of Robinhood Road.

In May, Interurban bought Springhouse Apartments, Ambercrest and The Fields Parkside in Winston-Salem for $26.3 million and rebranded the communities as the 433-unit View at 5010.

In August 2017, Interurban bought Southgate Gardens and Piedmont Trace, adjacent multi-family communities with 114 units on 12.32 acres at 209 Arthur Drive in Thomasville, for $5.1 million.

In January 2017, Interurban closed on a $9.5 million acquistion of Madison Hall Apartments in Clemmons, a 10.5-acre, 128-unit complex on Idols Road.

Interurban also owns Stadler Place in Greensboro and The Trails at Bethabara in Winston-Salem.

Bell Partners Expands Presence Out West

Bell Partners has expanded its presence on the left coast:

Bell Partners Inc…has been awarded a contract to manage multifamily assets in California and Washington.

The 17 apartment communities are owned by JB Matteson Inc., a San Francisco-based private real estate investment firm, and are valued at more than $1 billion.

“The JBM assets are a perfect complement to our existing $250 million California portfolio,” said Bell Partners’ CEO Jon Bell. “Bell has plans to continue expanding its footprint on the West Coast, and this new relationship is a clear example of our commitment to that objective. We are eager to grow our scale in these important apartment markets and look forward to cultivating an even deeper relationship with JB Matteson in the future.”

In recent years Bell has been concentrating on expanding out west, including three recent purchases in California for a combined $264.9 million.

Beverly Hills Company Buys Two Triad Properties for $14.6 Million

A Beverly Hills-based company has entered the Triad market with acquisitions in Winston-Salem. From a story in the Triad Business Journal:

A Beverly Hills, California, real estate investment firm has purchased adjacent Triad apartment communities for a combined $14.6 million, and is rebranding them under one name.

Evan Goldenberg, the principal of EBEX Holdings, told Triad Business Journal that The Ledges and 96 Ardsley, located along Ardsley Street in Winston-Salem’s Ardmore neighborhood, would be combined for rebranding as “The Residences at Diamond Ridge.”

Goldenberg said the purchases from LLCs managed by Charles Douthit of Raleigh are EBEX’s first in the Triad. He told TBJ that he has at least one other Triad apartment deal in the works, but is not ready to announce it. EBEX owns the 348-unit Arcadian Village apartments in Charlotte and two 100-unit complexes in Spartanburg, S.C.

Wellington Advisors will manage Diamond Ridge.

Three Greensboro Apartment Community’s Totaling 456 Units Sold

According to this article in the Triad Business Journal, three Greensboro apartment communities were sold to a joint partnership of TerraCap Management LLC and Willow Creek Partners LLC. The properties included Terrace at Olde Battleground (156 units), Terrace Oaks (120 units) and Madison Woods (180 units). The total paid for all three was $36 million, and according to the director of acquisitions for TerraCap there’s a good reason they’ve targeted Greensboro.

“Our interest stems from the fact that Greensboro has seen impressive growth that we believe will continue, and we think this portfolio is an outstanding investment with growth opportunity for TerraCap and Willow Creek Partners,” said Steve Good, partner and director of acquisitions for TerraCap.

Campus Crossing Bought by New York Firm

Campus Crossing Apartments, a 297-unit student community near UNC Greensboro, was purchased by Vesper Holdings LLC for $36.5 million and is being rebranded as Sherwood Forest Apartments. Details from an article in the Triad Business Journal:

According to Vesper, it will make a complete renovation/rebranding of Sherwood Forest with $1.8 million in capital expenditures, including renovation of the units and amenities, as well as extensive enhancements to the property’s exteriors and substantial technology upgrades throughout the complex.

Vesper said it ranks as one of the top 10 student housing owners in the country with a portfolio worth more than $1 billion. Vesper subsidiary Campus Life & Style manages its properties…

The signage on the exterior of the buildings has yet to be changed.

Madison Hall Apartments (Clemmons) Sells for $9.5 Million

Colorado-based Interurban Companies recently closed on its purchase of Madison Hall Apartments in Clemmons from Ginkgo Investment Co. The 128-unit community sold for $9.5 million ($74,218 a door) and Interurban is in the process of making some upgrades to the property.

Interurban Companies of Centennial, Colo., closed on its $9.5 million acquistion of Madison Hall Apartments in Clemmons on Jan. 11, and began what CEO Bill Doogan termed “light upgrades” to the exterior of buildings, landscaping and amenities…

Interurban came into the Triad for the first time in January 2016 when it purchased Stadler Place, a 144-unit complex in Greensboro.

Elite Street Buys Three Triad Apartment Communities

Elite Street Capital, a REIT with offices in Houston and Tel Aviv, has purchased three Triad properties:

In Greensboro, Elite Street bought The Ashland for $14.76 million and The Lakes on Meadowood (formerly Shadow Lake) for $8.5 million. Elite Street paid $19.49 million for Ambercrest in Winston-Salem. Elite Street owns another Greensboro complex, The Fields at Lincoln Green, which it purchased in early 2015…

“We like the Triad market due to its stability and the success proven by our experience with Lincoln Green,” said David Whitby, chief investment officer of Elite Street. “We’ll continue to buy aggressively in the Triad going forward.”

Bell Partners Busy Going Into 2017

Two recent stories about Bell Partners show that the company is not resting on its laurels as it enters 2017. In the first story we learn that Bell rounded out an active 2016 by selling two properties for a total of $100 million:

Greensboro-based Bell Partners Inc. said Wednesday that it completed the sale of two properties in Asheville and Atlanta for a cumulative sale price of more than $100 million in December.

Bell’s sale of the two communities — Biltmore Park in Asheville and Bell Cheshire Bridge in Atlanta, Ga. — bring the total number of transactions made by Bell in 2016 to $1.3 billion. Last year, the company sold 12 properties for $475 million and acquired 12 apartment communities comprised of 3,575 units for $791 million. Bell Partners will retain property management responsibilities for Bell Biltmore Park.

The second story provides a hint at what Bell is looking to do in 2017:

Greensboro-based Bell Partners Inc., one of the nation’s largest apartment investment and management companies, has launched an effort to raise up to $465 million.

According to a Form D filed with the Securities and Exchange Commission, the company has thus far raised $285 million in equity financing from investors for its Bell Institutional Fund VI L.P., with $180 million left to raise. Company officials declined to disclose the reason behind why the firm was raising the funds. Bell Partners in the past has raised equity financing to invest in apartments and senior housing projects…

Bell Partners is raising the financing amid a flurry of recent acquisitions. The company recently completed an acquisition of an Atlanta-area apartment complex in December and two apartment projects in Texas in November.Including those deals, the company eclipsed more than $1.3 billion in transactions in 2016, including both acquisitions and dispositions. The company has completed more than $10 billion of apartment transactions since 2002.

Another Massive Apartment Deal

According to this article in the Wall Street Journal, Sam Zell’s Equity Residential has sold a 23,000-unit portfolio to Starwood Capital Group for $5.4 billion. From the article:

This deal is Mr. Zell’s biggest since 2012. Back then, Equity Residential was a buyer. The firm teamed with AvalonBay Communities to purchase apartment giant Archstone for $6.5 billion, not including about $9.5 billion in debt.

But Equity Residential has become “less aggressive as buyers of assets” in recent years, Mr. Zell said in an interview late Friday. Instead, it is getting out of suburban markets and into downtown urban centers, where young people are moving and where it is more difficult to build, he said.

Most of the 23,300 apartment units in the deal, roughly a quarter of Equity Residential’s total, are low-rise and mid-rise units in suburban markets in and around southern Florida, Denver, Seattle, Washington, D.C., and Southern California. Analysts expect a significant amount of new supply to be concentrated in those markets in coming years.

“There’s an awful lot of apartments under construction,” Mr. Zell said, “and the majority of them are garden apartments in suburban areas.”

Meanwhile, on the other side of the deal sits Starwood, which is betting big on the apartment market. In the last year it has purchased or put under contract 67,800 units. Why? Here’s the money quote from the firm’s CEO:

“This is the healthiest U.S. apartment market in my lifetime,” Mr. Sternlicht said in an interview Friday. “We don’t see that trend reversing.”