A deep-pocketed New England real estate investor has finalized two Charleston apartment acquisitions totaling nearly $140 million, calling it the kickoff of a "multi-decade commitment" in the Lowcountry.
Northland Investment Corp. this week bought the 312-unit Wharf 7 property on Daniel Island and The Standard, a 280-unit complex along Maybank Highway on James Island.
The Newton, Mass.-based private equity firm paid nearly $70 million for Wharf 7 — among the highest prices ever for an apartment deal on Daniel Island, according to Berkeley County land records.
The company also laid out nearly $69 million for the James Island property, according to a deed filed Friday with Charleston County.
The two sales averaged out to about $235,000 per rental unit.
The sellers were New Jersey-based affiliates of PGIM Inc., formerly Prudential Investment Management, the asset management arm of life insurer Prudential Financial, according to land records for Charleston and Berkeley counties.
“Our acquisition of these two assets is just the beginning of our multi-decade commitment to Charleston and its residents," said Matthew Gottesdiener, Northland's chief investment officer.
Northland said its real estate asset portfolio is valued at $5.5 billion and includes more than 25,000 residential units and 2.5 million square feet of commercial space. Until this week the company had no holdings in South Carolina, though it owns apartments in Charlotte.
Gottesdiener said Northland was attracted to the Charleston region because it is "home to some of the country's fastest-growing and most dynamic companies."
The firm also noted that Charleston "has become a top global destination with an expansive and diversified economy."
"With an influx of multinational companies and fast-growing startups moving into the city, the labor force has grown four times the national average," Northland said in a statement.
Moreover, the city's quality of life and work opportunities "attract an educated millennial workforce that desires highly amenitized rental communities in prime locations,” Gottesdiener said.
The Standard was completed in 2015 and Wharf 7 opened the following year. Monthly rents at the two properties start around $1,475 and climb to about $2,400, according to online apartment websites.
Woodfield Development built the properties for Prudential Financial.