The multifamily community in suburban Raleigh sold for $15.8 million after completion of strategic value-add campaign
Eller Capital Partners, a private equity real estate investment firm with specialized experience in multifamily acquisitions, renovation and asset management, announced today the sale of the Flats on 7th apartment community in Garner, North Carolina near Raleigh. The property sold for $15.8 million to a private out-of-state investor.
Eller acquired the 136-unit, 126,300-square-foot property in 2017 and completed a series of strategic renovations to upgrade and modernize the aging community, which was built in 1982 and formerly known as Forest Hills Apartments. Eller incorporated a number of new upgrades within all 136 units, including stainless steel appliances, granite countertops, new plumbing fixtures, designer cabinetry doors and vinyl plank flooring. The capital improvement plan also included conversions to energy-star appliances, water-saving plumbing fixtures and LED interior lighting, bringing new sustainability measures to the community. Enhancements for the rest of the property included a new clubhouse, leasing office, fitness center, a coffee lounge and an internet cafe.
The disposition reflects the continued success of Eller’s value-add strategy, a proven formula that focuses on the purchasing, renovation and repositioning of multifamily properties in high-growth suburban submarkets. The firm has extensive expertise in executing large scale renovations that modernize the building exteriors, reimagine and improve amenity offerings and upgrade all unit interior finishes to make them more comparable to that which is found in new multifamily construction.
Flats on 7th is within 10 minutes of multiple high-end shopping centers and entertainment destinations, including Forest Hill Shopping Center, White Oak Crossing and Garner Towne Square. In addition, Amazon recently unveiled plans to build a $200 million high-tech distribution center just a few miles away from the community, with the project expected to create approximately 1,500 new jobs.
“Flats on 7th has seen impressive operating momentum since the completion of our capital improvements, with rental rates maintaining healthy levels despite the challenges of the pandemic. That certainly bodes well for the new owners,” said Daniel Eller, President and CEO of Eller Capital Partners. “We’re pleased to complete the transaction and notch another meaningful victory for our strategic investment partners as we continue to push forward on additional growth opportunities for the year ahead. The Triangle will continue to be a key focal point for our company.”
Eller’s unique blueprint and demonstrated ability to generate meaningful returns has attracted a mix of private wealth and institutional partners for a $50 million fund that launched in mid-2019. The firm expects that its current growth initiative could result in the acquisition of 15-20 assets worth between $750 million and $1.25 billion over the next few years.
Watson Bryant, Paul Marley and Jordan McCarley from Cushman & Wakefield’s Multifamily Advisory Group represented Eller in the transaction.
“The property’s ideal location in the expanding Garner submarket, in addition to strong operating momentum, offers new ownership an advantageous position to capitalize on future rent growth,” said Bryant.
The Triangle market has posed to be particularly resilient throughout the pandemic, with apartment vacancies reaching near pre-pandemic levels by the end of September. Communities with both lower and higher-end rent prices performed well even during the onset of the pandemic. The Raleigh-Durham market boasts an increasingly diversified economy, low cost of doing business, deep labor pool and access to several top universities and hospital systems, making it an attractive market for investors.
The Eller leadership team has participated in over $2 billion worth of transaction volume, with specialized experience in acquisitions, dispositions, asset management, property and construction management, land entitlement and ground-up development. The team averages 20 years of industry experience cultivated at leading real estate firms.
Founded in 2011, Eller Capital Partners is one of the fastest growing private equity real estate investment firms in the Southeast. The company is currently active in Raleigh-Durham, Wilmington, Greensboro and Myrtle Beach, and has acquired approximately 3,500 units to date.
For more information on Eller Capital and its recent initiatives, click here.
About Eller Capital Partners
Chapel Hill, NC based Eller Capital Partners is a private equity real estate firm focused exclusively on investing in multifamily assets that are located in the growing regions of the southeastern United States. Since 2011, Eller has acquired over $375 million of well-located properties, applying a vertically integrated, value-added approach to optimize the performance of each asset. Eller has a senior management team that offers over 100 years of experience in the multifamily industry and has been directly and meaningfully involved in real estate transactions totaling well over $2 billion. The company has expertise in all aspects of real estate acquisition, renovation, construction management, property management, asset management, fund management and disposition. For more information, visit https://www.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 53,000 employees in 400 offices and 60 countries. In 2019, the firm had revenue of $8.8 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com
