JAG, STARS Acquire North Carolina Community
The buyers plan to complete unit renovations begun by the prior owners.
Jefferson Apartment Group and STARS REI made their first joint acquisition in the North Carolina market, investing in a garden-style community in Durham. The partnership acquired 501 Estates from Spyglass Capital for $70 million, a representative for JAG told Multi-Housing News.
The property, which was constructed in 2001, offers 270 units in one-, two- and three-bedroom units, along with 49 townhomes and 41 cottages in two- and three-bed floorplans that come with garages. Residences range from 828 to 1,568 square feet. The community is currently 94 percent occupied, according to JAG.
More than 60 percent of the units at 501 Estates have been renovated with plank flooring, granite counters, stainless steel appliances, double vanities and other modern upgrades. The previous renovations also included enhancements to the common amenities, which include a new fitness center, a refinished pool, a new covered pavilion with an outdoor kitchen and fireplace, a new pet spa, a second dog park and substantial clubhouse upgrades. The new ownership plans to continue the unit renovation program, which is slated to conclude by 2025.
Located at 240 Ivy Meadow Lane, the community is approximately a mile from Interstate 40, which provides residents with quick access to Research Triangle Park. The community’s location puts it near the area’s major employers, including universities and tech companies like Amazon, Apple and Google, as well as life science companies like Biogen and Novartis Gene Therapies.
For JAG, 501 Estates will be the company’s first available community in North Carolina. The firm is also developing another property in the Tar Heel State. JAG broke ground on the 350-unit J Optimist Park in Charlotte in September 2022 and is expected to deliver the community next fall. Further north, JAG is working on a 310-unit luxury apartment community in Fort Washington, Pa.
“JAG sees the Triangle and Charlotte as two [metros] poised for continued population and employment growth,” James Butz, CEO at JAG, told MHN. “Our goal moving forward is to build or buy in the best locations in each metro area set to see substantial job growth—and to grow our presence in the Carolinas.”
The 501 Estates property is also STARS’s first investment in the region. Felipe Lattapiat, associate at STARS REI, said in prepared remarks that the company has a strong belief in the region’s fundamentals and long-term performance and is looking at expanding its footprint in the area.