Three Multifamily Communities Trade for $83M
By Eliza Theiss, Associate Editor
Richmond, Va.-based Landmark Apartment Trust of America Inc. (LATA) has announced the acquisition of three Charlotte multifamily communities for an estimated $83 million. The three assets, Mallard Creek, Abbington Place and Ashley Court, have a combined 795 units and are 93 percent occupied.
“The acquisition of these three high-quality properties significantly expands our operations in Charlotte and aligns with our disciplined investment strategy of acquiring attractive assets at a discount to replacement cost,” said LATA CEO Stanley J. Olander in a news release, adding: “We believe these assets offer strong unrealized cash flow potential that we plan to unlock by implementing our proven operating platform and renovation and repositioning strategy.”
And the optimism surrounding the multifamily industry seems to be quite on point. According to Marcus & Millichap’s 2013 market forecast report, the 20-34-year-old age bracket—the largest rental age group—is expected to increase by 50,000 in the next five years, which will not only keep vacancies low but also increase building efforts even further throughout the year. It is most likely that completed units will pass well above the last decade’s average of 2,000 per annum.
And the three properties purchased by LATA are located ideally for increasing revenue and tenancy. Their close proximity to downtown Charlotte and the University submarket, with convenient access to major interstate highways, will appeal to young professionals in the greater Charlotte area, as will their amenities.
Located at 6001 Bennettsville Ln., the 1999-built Mallard Creek boasts 240 units. Community amenities include a fully equipped fitness center, pool complete with a deck, resident clubhouse, business center, playground, car care center, detached garages and landscaped grounds. The garden-style community is also pet-friendly – a major draw for a young demographic. Mallard Creek boast one-, two- and three-bedroom units.
Located at 10015 Pantheon Court, 279-unit Abbington Place was developed in two phases between 2005 and 2008. It comprises one-, two and three-bedroom units in either three-story buildings or villas. Amenities include a pool, patios, courtyards and detached garages.
Adjacent to Abbington Places is the 276-unit Ashley Court. The 9740 Ashley Lake Court property was built in two phases between 2009 and 2011. The one-, two and three-bedroom apartment complex boasts amenities such as a 24-hour cardio center, 24-hour business center, private conference room, pool with adjacent dressing rooms, clubhouse complete with coffee bar, community grilling area and car care center.
Landmark Apartment Trust of America owns and operates over 11,000 apartment units located throughout the Southeastern United States. LATA targets below market acquisition and repositioning of mid-income multifamily properties in the South.
Photo courtesy of the Abbington Place Facebook page
Chart courtesy of Marcus & Millichap