Bluerock Buys Raleigh Community for $49M

The buyer assumed an outstanding $27.4 million Fannie Mae loan as part of the 276-unit buy.
Windsor Falls Apartments

Bluerock Real Estate has paid $48.8 million for Windsor Falls Apartments, a 276-unit multifamily property in Raleigh, N.C. The seller was Gamma Real Estate, according to Yardi Matrix.

As part of the transaction, the buyer assumed an outstanding $27.4 million Fannie Mae loan. The mortgage, set to mature in November 2027, includes a fixed interest rate, five years of interest-only payments and a 30-year amortization period.

The property last traded in 2017, when Gamma bought it from Chaucer Creek Capital for $35.7 million, according to data from Yardi Matrix. At the time, Greystone closed the Fannie Mae acquisition loan.

Windsor Falls Apartments encompasses 13 three-story buildings on 12 acres at 1500 Sunbow Falls Lane. The 1994-built community consists of one- to three-bedroom apartments, ranging from 650 to 1,218 square feet. All units include washers and dryers, while larger units feature fireplaces and vaulted ceilings. Residents have access to a gym, business center, clubhouse, swimming pool and tennis court.

Windsor Falls Apartments is within the North Hills neighborhood, roughly 6 miles from downtown Raleigh. The community is adjacent to an elementary school and a short distance from the Old Wake Forest Road retail corridor.

At the beginning of the year, Bluerock completed the $65 million disposition of a 306-unit multifamily asset in Orlando, Fla.

The strength of the Triangle

According to a recent Yardi Matrix report, the Raleigh-Durham multifamily market displayed strong fundamentals at the start of the year, with rents rising by 30 basis points on a trailing three-month basis in April, despite an active development pipeline. In the first quarter of the year, 2,628 units came online and another 9,775 units were under construction as of April.

Demand may be boosted by a significant population growth coupled with a series of ntoable corporate expansions in the market. Both Google and Apple have announced plans to establish major campuses in the area.