$38M for Port Royal Luxury Community
- Sep 04, 2015
Charlotte, N.C.—Prominent Realty Group partnered with NorthMarq Capital’s Atlanta in arranging and closing a $9.1 million equity investment from a value add institutional investor. A luxury apartment community located at 1 Preserve Ave. W in Port Royal was acquired using the equity for a total amount of $38 million.
The acquired property Preserve at Port Royal is a premiere luxury apartment community featuring one- and two-bedroom units with prices ranging between $845 and $1,070. Unit sizes range between 693 square feet and 1,151 square feet. Amenities include a business center and clubhouse, pet-friendly community, fitness center, garage and extra storage, swimming pool, laundry facility, Wi-Fi, playground, on-site management, and emergency maintenance.
“The main challenge about this transaction was its location being perceived as tertiary,” mentioned Will James, vice president of NorthMarq Capital’s Atlanta office who represented PRG. “The property was built in 2006 and in a great location within the city of Port Royal. Just 20 minutes away and closer to Hilton Head, a similar vintage project traded for a 20% premium just because it was on the way to Hilton Head Island. Our client’s basis is at or just below replacement costs, and once the state of SC sells the 50 acre Port of Port Royal, the waterfront will become a vibrant retail and tourist destination further improving the rental market on the Port Royal Island.”
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