Catalyst, Origin Investments Team Up Again in NC

Catalyst Capital Partners and Origin Investments are moving ahead with plans for their third multifamily community in the Asheville, N.C., market. Their latest project will be Catalyst Biltmore Village, a Class A, 281-unit garden-style apartment and townhome development.

Located at 115 Fairview Rd. near the renowned Biltmore Estate, the development is located in a qualified Opportunity Zone. The project is the first investment made on behalf of Origin Investments Qualified Opportunity Zone Fund III. 

The other two joint venture developments from Catalyst and Origin in Asheville are Chorus at RiverBlue, a 153-unit active adult community, and Hominy at RiverBlue, a 262-unit community.

Asheville is one of the Western North Carolina communities severely impacted by record flooding caused by Hurricane Helene. A spokesperson for the joint venture told Multi-Housing News both Catalyst and Origin expressed their concern for the devastation caused by the hurricane as well as the safety and welfare of those in the Western Carolinas and other areas in the Southeast.

Catalyst and Origin confirmed that none of their Asheville projects sustained significant damage. Chorus at RiverBlue was still in the foundation stage of construction and not yet vertical while Hominy at RiverBlue was approximately 60 days from delivery.

“There may be some minor repairs identified and cleanup costs, but it is still early to reach definitive conclusions,” the spokesperson said. “Importantly, Catalyst and Origin said there were no injuries to any on-site workers or staff members, highlighting the effectiveness of safety protocols during adverse conditions.”

Beau McIntosh, Catalyst managing partner, said Catalyst is making daily runs to bring household supplies to the area and its workers there, further expressing its priority to the safety and welfare of the community and its workers.

Catalyst Biltmore Village details

Catalyst has been working with the City of Asheville for two years entitling and designing the project, including rezoning the property and utilizing the city’s Land Use Incentive Grant program to implement a long-term real estate tax abatement. It will have 20 percent affordable units, offering rents that meet 80 percent of the Area Median Income.

Catalyst Biltmore Village was designed to achieve the NGBS Green certification, requiring it to be built to achieve high performance in resource, water and energy efficiency; site design; indoor environmental quality and operation and maintenance.

The units will feature stainless steel appliances, quartz countertops, integrated smart home technology and high-quality interior finishes. Community amenities include more than 10,600 square feet of common areas featuring extensive coworking spaces, natural areas and on-site storage. It will also have a health club with yoga studio, rooftop lounge, saltwater pool, outdoor kitchen area, pet park and spa and bike storage and repair area.

Catalyst Biltmore Village will be situated at the intersection of Interstate 240 and I-25, providing access to Asheville’s primary employment and entertainment cores including West Asheville’s Haywood Road District, River Arts District and Downtown Asheville. The Haywood Road District has more than 40 restaurants, bars and entertainment venues while Downtown and the River Arts District host hundreds of business including restaurants, retailers, art galleries and breweries.

Catalyst and Origin note the Asheville area has a $24 billion economy led by the healthcare and education industries and supplemented by tourism and manufacturing. Multifamily fundamentals have strengthened as jobs have grown. Rents have increased 7 percent annually since 2020 while vacancy has been at 5 percent, demonstrating the growth and demand in the market.

Construction debt financing for Catalyst Biltmore Village is being provided by Regions Bank. The joint venture partners declined to release the loan amount. BB+M is the architect for the project with C. Herman Construction serving as the general contractor and Civil Design Concepts responsible for civil engineering. Moore & Van Allen of Charlotte and Allen Stahl + Kilborne of Asheville are providing legal counsel for Catalyst.

Origin Investments activity

Last month, Origin Investment Delaware Statutory Trust acquired The Starling, a Class A, 300-unit community in Princeton, Texas. It was the trust’s first closed transaction as well as Origin Investment’s first common equity acquisition of an existing multifamily community since March 2020. The DST debuted in May and utilizes the 1031 exchange.

A real estate fund manager founded in 2007, Origin Investments has also been active in the multifamily sector through its Origin Qualified Opportunity Zone Funds. In May 2023, the firm closed its Origin Qualified Opportunity Zone Fund II after raising more than $300 million. The fund invested in numerous ground-up multifamily rental developments in markets including Atlanta; Colorado Springs, Colo.; Nashville, Tenn., and Jacksonville and Tampa, Fla. The firm’s Qualified Opportunity Zone Fund I raised more than $264 million.