Prudent Growth Partners, LLC, a Chapel Hill, NC based private equity real estate firm, has recently completed acquired an apartment community and an office building in two separate transactions which totaled $7.425 million.

The apartments, called Croatan Forest, are located in Havelock, NC and were purchased for $4.625 million. The 92-unit apartment community was constructed in stages in the 1980s and 1990s. The property’s current management company is being retained by Prudent Growth.

“We were impressed with the overall quality of the apartments, and we are hoping to add some value through exterior improvements and interior updates at turnover,” said Tom Hahn, President of Prudent Growth Partners. “The location is great and the nearby Cherry Point airfield is a big economic driver for the area. The apartments are also within a mile of the proposed 70-Bypass project, which will make them a convenient housing option for residents who may need to commute to either New Bern or Morehead City.”

The office building purchase, known as “504 Cumberland”, is a 55,000 square foot office-flex building located in Fayetteville, NC. It was purchased in late March for $2.8 million.

“We really like this building. It has a great mix of tenants, including several defense and government contractors, and there are a lot of interesting possibilities to improve the property, including adding additional yard storage and uplifting some of the vacant warehouse space into more office space,” said Hahn. “These smaller office and flex spaces are in high demand as Fayetteville continues to grow.”

Prudent Growth Partners focuses on acquiring garden style apartment communities, typically with 75 to 200 apartments, as well as neighborhood retail centers and office buildings.

“Our typical properties are Class B or C properties, in strong submarkets, which we believe will provide consistent cash flow and long-term value for our investors,” stated Hahn. “We have completed nearly 3 dozen transactions and our current portfolio consists of 24 properties, mainly located in North Carolina. We are also beginning to expand into some other attractive markets, such as Alabama, Tennessee, and Kentucky.”

Prudent Growth Partners has a growing network of accredited investors who participate in each transaction. “A typical transaction is structured to provide solid cash flow to our investors each quarter – typically an 8% annualized return – as well as long-term upside through the appreciation of the property,” said Hahn. “It is a passive investment for the investor and provides great returns and a nice hedge against future inflation.”

Prudent Growth Partners, LLC is a private equity real estate investment company based in Chapel Hill, NC. PGP’s focus is on properties that tend to be overlooked by larger institutions and which provide exceptional returns on invested capital along with the possibility of longer-term capital gains achieved by expert management and future price appreciation.