Raleigh, N.C.—The Apartments of Stonehenge, a 452-unit, garden-style community in the North Raleigh submarket of Raleigh, N.C., has traded hands for an unspecifed price. The seller was an affiliate of Ram Realty Advisors, while Magnolia Capital acquired the asset, marking the company’s first foray into the market.
Located at 7303 Hihenge Court, the 46.6-acre apartment property is in northern Raleigh’s master planned Stonehenge neighborhood, which is less than 10 miles from downtown. Residents can walk to the adjacent Stonehenge Market, a grocery-anchored shopping center that includes Harris Teeter, Starbucks and Rite Aid.
A local developer originally built the Apartments of Stonehenge in four phases between 1984 and 1993. Ram acquired the community in 2012 on behalf of Ram Realty Partners III, one of the company’s private equity funds. Following the acquisition, the company undertook more than $2.5 million in improvements, including interior and exterior renovations, as well as updated branding and marketing.
Specifically, Ram fully renovated 96 units to create a premium offering, which it branded The Reserve at Stonehenge. Upgrades included wood-style plank flooring, stainless steel appliances, track lighting, new paint and plumbing. Exterior renovations to the property included new signage, improvements to the pools and amenity areas, fresh paint, roofing and other fixes for deferred maintenance.
Magnolia Capital plans additional property improvements. “We have a high level of conviction in the Raleigh market going forward, and will implement our business plan to further improve and modernize the community,” said Max Peek, CEO and managing principal of Magnolia Capital.
The property is about 94 percent occupied. The HFF investment sales team representing the seller in the deal was led by managing directors Jeff Glenn and Justin Good and director Allan Lynch.