Raleigh, N.C.—HFF recently announced that it has closed the sale of Regency Place Apartments, a 180-unit apartment community in Raleigh, for $21 million. HFF worked on behalf of seller Covenant Capital Group. Towne Properties purchased the company’s first North Carolina asset free and clear of existing debt.
Located at 6210 Saint Regis Circle, the property is close to the junction between Interstate 40 and Interstate 440. Regency Place provides proximity to downtown Raleigh’s tech hub and other employment centers such as North Carolina State University and Cary’s Weston area. Regency Place features nine three-story buildings with 60 one- and 120 two-bedroom units, with an average size of 880 square feet. According to Yardi Matrix data, the amenities package includes a swimming pool, a tennis court and a fitness center, as well as 400 parking spaces.
“HFF is excited to be a part of Towne’s first acquisition in the Southeast, especially as operations at the property have continued to improve in recent months. As core-plus capital has flocked to Raleigh-Durham, the market responded favorably to Regency Place’s unique repositioning incorporating high-caliber finishes for the vintage asset,” said Justin Good, managing director at HFF, in prepared remarks.
During the past two years, the property has undergone several renovations. Exterior and common area improvements included the modernization of the clubhouse, the expansion of the fitness center with new equipment, a new dog park, new pool pavilion and deck, landscape enhancements, and new exterior paint. Unit upgrades included the addition of stainless steel appliances, granite countertops, new cabinet doors, new hardware and lighting, fresh interior paint and faux-wood flooring. However, occupancy is on a downward trajectory, reaching 90.6 percent in January 2017.
Image courtesy of Yardi Matrix