Banner Real Estate Group Sells Raleigh Luxury Apartments
- Aug 06, 2020
Six years after beginning construction on The Lincoln, a 224-unit luxury housing community in Raleigh, N.C., Banner Real Estate Group has sold the mid-rise apartment property to an undisclosed high-net worth private investor. The price paid for the 2-acre asset in the historic Moore Square District was not disclosed.
JLL Capital Markets represented Banner Real Estate Group, a Northbrook, Ill.-based group of real estate companies that develops, acquires and manages multifamily, senior housing and self-storage properties across the nation. The JLL Capital Markets Advisory team includes Managing Directors Jeff Glenn and Andrea Howard, Senior Director Allan Lynch and Directors Caylor Mark and John Currin. Debt and financing are led by Managing Directors Roger Edwards and Matthew Schoenfeldt.
Located at 408 E. Hargett St. in one of Raleigh’s most vibrant downtown neighborhoods, The Lincoln is in close proximity to the region’s second largest employment center, employing more than 48,000 people, and 250 retail and restaurants. The Moore Square District is also known as Raleigh’s “urban renaissance” and has seen an increase in public and private investments which is increasing property values, according to JLL.
The City of Raleigh recently completed a renovation of Moore Square, which is surrounded by restaurants, nightlife venues, the historic City Market and Exploris Museum and IMAX Theater. The property, which has a Walk Score of 95, is also within walking distance to the new Transfer Food Hall and the Historic Oakwood neighborhood.
Banner Apartments LLC and Metropolitan Investment Partners LLC broke ground on The Lincoln in June 2014 and completed construction in 2015. The five-story development has studio, one- and two-bedroom units with an average size of 759 square feet. The apartments have 9-foot-plus ceiling heights, wood-style flooring, oversized windows, granite countertops, stainless steel appliances and walk-in closets.
Community amenities include a pool, sundeck, outdoor fireplace, entertainment areas, fitness center, pet spa, coffee bar and attached parking garage with electric car charging stations for residents. In February 2018, Banner refinanced The Lincoln with a $26 million loan from MetLife. The variable-rate note was used to refinance a prior, three-year construction loan of the same value that was originated in 2014 by KeyBank.
Banner also owns The Metropolitan and Summermill at Falls River, both in Raleigh, and Parkside at South Tryon, an apartment community in Charlotte, N.C. The company has multifamily and senior housing properties in North Carolina, Arizona, Illinois, Texas, Michigan, Missouri and Wisconsin.
In December, Banner also sold Tradition at Stonewater, a 351-unit garden-style apartment community in Cary, N.C., to the Merchant Banking Division of Goldman Sachs. Located at 12000 Wisdom Drive, the 14-building property has easy access to major employment centers such as the Research Triangle Park and Duke University & Medical Center. Several members of the JLL Capital Markets team, including Glenn, Howard, Lynch and Mark, closed the deal on behalf of the seller and also procured the buyer. Banner had owned the asset since 2014.