Blaze Partners, Argosy to Convert Charlotte Hotel to Apartments
- Mar 02, 2021
Blaze Partners and Argosy Real Estate Partners have teamed up to acquire a nationally-branded extended stay hotel in the University City submarket of Charlotte, N.C., with plans to convert the 22-year-old hospitality property into a market-rate multifamily community.
The partners stated the acquisition was an off-market transaction and did not disclose the purchase price or costs estimated to repurpose the property at 8340 N. Tryon St. into a multifamily asset. They did not identify the extended-stay brand but the address shows Homewood Suites by Hilton, Charlotte-North/University Research Park located at the site.
Situated across from the McCullough Station of the LYNX Blue Line light rail service, the garden-style community was built in 1999. It consists of three existing buildings with a mix of studio, one- and two-bedroom floorplans. The community also has a separate clubhouse with amenities including a fitness center, media room and outdoor pool. Blaze intends to construct additional units as part of the vacant land acquired in the deal. Information on how much land was acquired or how many buildings or units would be added to the property was not available.
The partnership plans to strategically reposition the community, which will be clear of all hotel operations, over the next several months. The repositioning will include a full rebranding and comprehensive capital plan focused on community enhancements and targeted unit upgrades to deliver a Class A multifamily property at attractive price points.
Chris Riley and Eddy O’Brien, co-founders & managing partners of Blaze, said in prepared remarks the transaction continues the company’s expansion of its portfolio and investment strategy. The multifamily investment firm owns and operates institutional rental housing communities throughout the United States with a Sunbelt focus. The company owns multifamily properties in Georgia, Florida, South Carolina and North Carolina, with multiple assets in Atlanta, Charleston and Charlotte. The company also has a presence in Tampa, Fla.; Weston, Fla.; and Hilton Head, S.C. In addition to repurposing the former extended-stay hotel into multifamily housing, Blaze has also recently entered the build-for-rent single-family market.
O’Brien said in a prepared statement within the past 12 months the firm has transacted or currently has under control about $300 million in investment volume. He said during that time Blaze has also formalized new strategic capital relationships, launched two additional strategies and added more employees.
In March 2020, Blaze purchased Nine15 Apartments, a 362-unit luxury community in downtown Tampa, from Carter. The 23-story high-rise was built in 2017 and is two blocks from Tampa Riverwalk. A year earlier Blaze acquired The Gibson, a 250-unit luxury community in the Plaza Midwood neighborhood approximately 1 mile northeast of Uptown Charlotte, N.C. The Gibson was built in 2015 on the site of a history recording studio.
Also in 2019, Blaze acquired Planters Crossing Apartments, a 256-unit apartment community in North Charleston. The company formed an affiliate in December 2019 to purchase Legacy Village Apartments, a 229-unit multifamily community in Mooresville, N.C., a northern suburb of Charlotte. It was built in 2017 by Charter Properties and is adjacent to Lowe’s Corporate Headquarters and Lake Norman Regional Medical Center.
Argosy, a real estate investment firm with offices in Wayne, Pa., Denver and San Francisco, specializes in opportunistic, value-add, core-plus and Opportunity Zone strategies in the lower middle market. The firm forms joint venture partnerships with local operating partners like Blaze for its investments. In January 2020, Argosy partnered with Woodfield Investments to secure a $100.6 million construction loan from PCCP for Morrison Yard, a 380-unit residential development in a qualified Opportunity Zone in downtown Charleston. Argosy also provided $27.8 million in equity financing.