Arch Cos. has acquired a portfolio of four multifamily properties spread across North and South Carolina for $61 million. The company also secured $61.5 million in financing from Walker Dunlop that will be used to acquire the portfolio and renovate the properties.
The 1,125-unit portfolio has three properties located in Winston-Salem, N.C.—Chesterfield, Silas Creek and Twin City—and one property named Whispering Pines in Spartanburg, S.C. As the buildings were constructed in the 70s and 80s, Arch is planning to conduct various interior and exterior upgrades to each of the properties as part of an extensive renovation and rebranding plan.
The 294-unit Chesterfield is located at 3411 Old Vineyard Road and is 86.1 percent occupied. Residents in the two- and three-bedroom units are paying an average rent of $749, according to Yardi Matrix data.
Silas Creek, located at 1010 Oak Grove Road, is a 234-unit multifamily community of one, two and three-bedroom units. The property is 70.5 percent occupied and residents pay an average rent of $742, according to Yardi Matrix data.
The remaining property in Winston-Salem, Twin City, is located at 1805 Franciscan Terrace and offers 285 units of one-, two- and three-bedroom configurations. Yardi Matrix data shows the property is 55.1 percent occupied at an average rent of $749.
In South Carolina, the 312-unit Whispering Pines is located at 408 Abner Road. The property offers one, two and three-bedroom units and is 61.9 percent occupied with an average rent of $719, according to Yardi Matrix data.
Along with new ownership, these four properties will be managed by Ore Living and Wellington Advisors.
SPREADING IN THE SOUTHEAST
Jeffrey Simpson, managing partner at Arch Cos., said in a prepared statement that the Southeast market represents tremendous upside potential and both Winston-Salem and Spartanburg have grown considerably.
Elsewhere in the Southeast U.S., Arch acquired a total of 878 multifamily units in Jacksonville, Fla., in the two months. In October, the company purchased Camelot Gardens, a 692-unit community, for $40 million. Just a couple of weeks prior in September, Arch also purchased Midtown Oaks, a 176-unit multifamily property for $14.1 million.
Arch’s Southeast value-add multifamily portfolio now spans Florida, Connecticut, Alabama, California, North and South Carolina and they plan to continue their acquisition strategy in the region.