Charlotte Community Scores $40M Recap

Acre Valley Real Estate Capital has joined with Blaze Partners as a new equity partner on the 384-unit apartment community.

Arbor Steele Creek. Image courtesy of CBRE

Multifamily investment firm Blaze Partners has brought in Acre Valley Real Estate Capital as a new equity partner on Arbor Steele Creek, a 384-unit apartment community in southwest Charlotte, N.C. CBRE secured a $39.7 million Freddie Mac loan for the recapitalization deal.

Blaze Partners and its previous partner, True North Management Group, acquired the property in January 2017 for $46.1 million, according to Yardi Matrix data. Through the recap transaction, Acre Valley replaces True North in the ownership venture. The new ownership intends to make further value-add capital investments, continuing the interior and exterior renovation program that was launched after the previous purchase.

Built in 2003, the property at 12235 Stone Arbor Way consists of 16 three-story buildings along with a one-story clubhouse. Community amenities include a business center, fitness center, swimming pool, picnic areas and laundry facilities. Nate Sittema and Kristen Reilley of CBRE led the efforts to arrange the 10-year loan, which brings fresh leverage and an interest-only period for the borrowers.

Blaze Partners targets Class A rental communities in the Southeast and has acquired roughly $500 million in gross asset value since 2016. In March, the company snapped up The Gibson, a 250-unit luxury community in the Plaza Midwood neighborhood of Charlotte, for $53.3 million.

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