CBRE Group, Inc., is pleased to have arranged the sale and secured financing for Verde Vista in Asheville, NC. Phil Brosseau and Kevin Kempf exclusively represented the seller, Greenville-based Davis Property Group. The property sold for $41.5 million on July 15, 2016, to Raleigh-based Chaucer Creek Capital, LLC.
CBRE Capital Markets’ Debt & Structured Finance team secured a $33.2 million loan for the acquisition of Verde Vista. Steve Heffner, Nate Sittema and Kristen Reilley of CBRE’s Charlotte office arranged the financing on behalf of the borrower. The 10-year fixed-rate loan was provided by Fannie Mae.
Verde Vista, built in 2012, consists of 257 units and features 9-foot ceilings, plank wood-look flooring, in-unit washer/dryers and EnergyStar black appliances. The property is EnergyStar rated and was awarded the National Green Building Standard – Silver by the National Association of Home Builders.
Verde Vista is ideally located directly off of Highway 240 and Highway 74, next to the Riverbend Marketplace and just down the road from the high-end Asheville Market and Asheville Mall, boasting retailers like Whole Foods and United Artists Cinemas. Within a 3-mile radius of Verde Vista, there are more than 13 shopping centers totaling 346 stores and nearly 2.6 million sq. ft. of retail space.
Surrounded by the scenic Blue Ridge Mountains, Asheville attracts outdoor lovers, millennials and retirees alike and boasts one of the strongest small economies in North Carolina. Forbes Magazine ranked Asheville no. 12 nationally for the Best Places for Business & Careers in 2015 and The Huffington Post named it the “Next Green Tech Town.”
Verde Vista is in the East submarket of Asheville, which has an average vacancy of 3.3% and average rents of $1,007 per unit per month. The average rent per unit in the submarket increased 2.9% in the last year and averaged 4.1% each year over the last five years.
“Asheville is a thriving city that is experiencing strong population growth driven by a diversifying economy. It offers the perfect combination of history, culture, beer and foodie scene, access to the outdoors and a growing economy that appeals to both millennials and retirees. We are bullish on Asheville’s multi-family demand as evidenced by Verde Vista’s occupancy which has averaged more than 98% since 2013,” said Phil Brosseau.
“Verde Vista benefited tremendously as a result of its compliance within the Fannie Mae Green Financing Program. Davis Property Group developed an incredibly high quality asset with consideration given to environmentally friendly standards that were rewarded by Fannie Mae MBS buyers specifically focused on exactly this product. As a result, we were able to deliver for Chaucer Creek and their investors financing that perfectly complemented their ownership strategy and rewards their acquisition of an environmentally conscious residential option,” commented Nate Sittema.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
