North Carolina Residential Property Changes Hands

Liberty Warehouse. Image courtesy of Clear Sky Images

MEAG, the asset management arm of Munich Re Group, a German-based multinational insurance company, and ERGO, the group’s primary insurance subsidiary, has acquired Liberty Warehouse, a 247-unit Class A residential property in Durham, N.C., in cooperation with CBRE Investment Management.

The investment is part of a separate account mandate that MEAG recently signed with CBRE Investment Management to invest in the United State residential market and was made on behalf of Munich Re Group.

The price and seller were not disclosed. The property last changed hands in May 2017, when New York-based Duck Pond Realty, a private multifamily investment, development and management company, acquired the asset in downtown Durham for $69 million. The property is still listed on the Duck Pond Realty website.

The property at 530 Foster St. was developed by East West Partners of Chapel Hill, N.C., and sold after completion in 2017. It was built on a historic site that used to serve as a tobacco auction warehouse. The developer retained some of the historic brick facades and other architectural details of the old Liberty Warehouse when building the midrise apartment community that also has nearly 21,000 square feet of fully leased retail space and a parking deck. The property is LEED certified for building design and construction.

Volker Zinkl, MEAG’s head of real estate asset management international, said in a prepared statement Liberty Warehouse is a strategic addition to Munich Re’s growing U.S. residential portfolio. He said the firm believes in the long-term outperformance of prime, well-located, urban assets in walkable neighborhoods that foster a work-life environment and attract talent and growth.

Jeff Torto, portfolio manager, at CBRE Investment Management, said in prepared remarks the Raleigh-Durham market has transformed into an attractive new economy hub. Citing the market’s established educational infrastructure, growing life science ecosystem and influx of STEM talent, he said they expect it to continue to be an outperforming market.

Property details

The property will continue to be managed by Greystar Property Management.

Liberty Warehouse is within the Raleigh-Durham Technology/Life Science Corridor and near three top universities—Duke, the University of North Carolina at Chapel Hill and North Carolina State University. It is in walking distance to major employers and Durham’s entertainment district.

The building has one- and two-bedroom floorplans and features high-end finishes, stainless steel appliances, smart thermostats, in-unit washers and dryers and natural quartz or granite countertops. Some units have 10- to 14-foot ceilings. Community amenities include a 24-hour fitness center, saltwater swimming pool, tenant lounge and club room, pet run and pet spa, electric vehicle charging stations and 376 parking spaces.