A California-based commercial broker was involved in the sale of six multifamily properties, including one in metro Charleston, fetching $274,250,000.
CBRE, headquartered in Los Angeles, says the apartment portfolio stretches over five "growth markets" in the Southeast — Atlanta, Orlando, Raleigh, Charlotte and Charleston. The properties totaled 1,863 residential units, it says.
American Landmark Apartments after a competitive process bought the properties, CBRE says. The portfolio "was especially attractive to investors who seek suburban value-add opportunities," according to the broker. CBRE's Shea Campbell, Kevin Kempf, Ashish Cholia, Colleen Hendrix and Phil Brosseau represented the undisclosed seller, it says.
The Charleston property was Arbor Village, located off upper Dorchester Road in Summerville.
Other properties sold were Arbor Terrace and Summerset apartments in Atlanta, Bella in Orlando, Sterling Town Center in Raleigh and Integra Springs at Kellswater in Charlotte. More than 70 percent of the portfolio is less than 10 years old, CBRE says, adding that all the properties offered value and opportunity.
The five markets that are home to the properties are all high growth areas sporting population increases of 10 percent or more during the past five years. They all are expected to grow by 10 percent or more in the next five years. By comparison, the national average population growth since 2013 was 3.7 percent, according to CBRE research.
American Landmark Apartments entered South Carolina for the first time in buying the Summerville apartment home community. It has existing properties in Georgia, North Carolina, Florida and Texas.
"Investors remain bullish on the Southeast and are particularly excited about the five markets represented in this portfolio," says Campbell, with CBRE. "We continue to see solid rent growth in these locations, on average 5.7 percent year-over-year, which fueled investor appetite."
The portfolio consists of "100 percent classic units, offering new ownership significant upside through a multitude of renovation scopes, says Kempf, senior vice president with CBRE's Southeast Multifamily team.
The broker's annual North American Cap Rate Survey — which figures investment property returns based on the expected rental income generated — shows that suburban multifamily rates decreased .06 percent to 5.53 percent in the first half of 2018. As a result, "the gap between suburban and infill multifamily properties (closed) to less than half a percent." The survey findings indicate that "suburban multifamily pricing is expected to remain stable in the second half of the year," CBRE says.
CBRE Group, Inc. is among the leading global commercial real estate services and investment firms employing more than 80,000 people and counting 450 offices worldwide. Go to www.cbre.com.