TWO RALEIGH MULTIFAMILY PROPERTIES TRADE FOR $63.6 MILLION
RALEIGH, N.C. — In a time that is seeing few trophy deals in the entire North Carolina market, two luxury multifamily properties, both located in downtown Raleigh, have traded hands.
Most recently, Mid-America Apartment Communities acquired Hue, located at 300 W. Hargett St., for $33.6 million. The 208-unit project was originally developed in the third quarter of 2009 as a luxury condominium project. However, it was foreclosed on by the lender, iStar Financial, without a single unit being sold.
The community consists of seven stories of residences over street-level retail space, which was not included in the sale. Amenities include a pool, a fitness center, controlled access and covered parking. Phil Brosseau, Jr., with CB Richard Ellis' Carolina Multi-House Group represented the seller in the deal. Don Aldridge of Memphis Commercial Group led the team representing the buyer. Mid-America plans to lease the property as high-end apartments, with rents ranging from $995 for a studio to $2,300 for a two-bedroom.
As news of Hue's sale came out, it was also revealed that Charlotte developer Crosland had recently sold 712 Tucker to J.P. Morgan Investment Management for $30 million in an off-market deal. Unlike Hue, 712 Tucker has enjoyed high occupancy since its completion in 2009, with vacancies ranging from 1 to 5 percent.
Located 3.5 miles from Hue at 712 Tucker St., 712 Tucker contains 179 rental units with condo-quality finishes. The property contains the usual luxury amenities including a swimming pool, a fitness center and a game room.
David Ravin, president of Crosland's residential division, comments that many in the real estate community and in the media are giving a lot of press to the fact that these two transactions were announced so close together. What surprises him, though, is that there have not been more deals like it this year. He says that he receives calls daily from people looking for opportunities to invest in, but he has to tell them that the Raleigh market just does not have that many core properties for sale.
“There is a lot of capital sitting on the sidelines, but not voluntarily,” Ravin says. “They're just not finding opportunities.”
— Coleman Wood