By Dees Stribling, Contributing Editor
Charleston, S.C.—Kettler and the Stillman Group have purchased two apartment properties in Charleston, S.C., from Fairfield Paces Watch LLC and Fairfield Waverly LLC for a combined $58.55 million. Altogether, the properties total 472 garden apartment units.
The portfolio is made up of the Paces Watch Apartments in Mount Pleasant with 232 units, and Waverly Place Apartments in North Charleston with 240 units. The apartment communities are near downtown Charleston.
“We are going where there’s growth, and the Charleston market has outperformed,” Kettler CEO Robert C. Kettler said. “The submarkets around Charleston where Paces Watch and Waverly Place are located are experiencing significant economic expansion. This is a strategic push into the Charleston market.”
As of the second quarter, demand for apartments in Charleston during the previous four quarters (1,077 units) just outpaced supply (1,050 units), according to MPF Research. As a result, occupancy jumped 0.8 points quarter-over-quarter and increased 0.2 points year-over-year, coming in at 95.8 percent as of 2Q 2015, a healthy rate given Charleston’s recent new supply. Effective rents increased 2.2 percent quarter-over-quarter, and 5.7 percent year-over-year, MPF also reported.
The joint venture plans both through interior and exterior upgrades at both properties. Before the transaction Fairfield managed Paces Watch and Waverly, whereas now Kettler Management will provide management services for both. The transaction was brokered by Dean Smith and John Heimburger from the Charlotte Office of ARA, a Newmark Company.