We’ve invested roughly $9.7 million in the acquisition and renovation of Sterling Town Center, a 339-unit apartment complex in Raleigh, North Carolina. This project is the latest execution of our value-add apartment strategy, where we buy an existing community at an attractive price in an area with long-term growth potential, and perform improvements aimed at increasing rents and property value.
Business plan
At acquisition, the apartment complex was 94.7% occupied. Our partner anticipates completion of modern interior and exterior value-add finishes. Unit improvements are expected to include adding granite countertops, new cabinets and lighting, and replacing floors in units. Around the property, expected improvements include new landscaping, updates to the existing dog park, and updating amenities such as the pool and fitness center.
Why we invested
- Strong relationship with experienced partner: American Landmark Apartments is an experienced developer and property manager in the southwest, currently managing over 50 apartment complexes. Together, we have successfully managed six other similar value-add apartment projects, including The Enclave at Lake Ellenor in Orlando, which experienced a 39% appreciation in appraised value in just 21 months.
- Long-term, low-rate debt: The property was acquired with an existing senior loan in place, which has 33 years remaining at an attractive 3.70% interest rate.
- Fast-growing area: Raleigh is one of the fastest-growing metropolitan areas in the United States. The city was named by Forbes as the 15th fastest growing city in the US in 2018 after growing nearly three times faster than the nation as a whole between 2010 and 2017.
