Charlotte Multifamily Wrap-Up – August 2020

University City project scores $45 million loan. Gastonia community sells for $37 million. Catch up on our August selection of Charlotte must-reads.
Rendering of Lumeo Apartments. Image courtesy of Panorama Holdings

North Carolina continues to grapple with the effects of the pandemic. While new cases fell significantly in early August, by month-end diagnoses were hitting record highs. Though Charlotte has not been immune—Mecklenburg County has the highest number of total cases statewide—new cases and hospitalizations began to decrease in the metro by the end of August.

While the state’s eviction moratorium expired in June, the recently announced federal ban could offer struggling renters some protection through the end of the year. Amidst uncertainty, the multifamily sector in Charlotte remained active in August. With several notable deals and projects underway, investors and developers signal confidence in the market’s eventual recovery. Read our August list of Charlotte must-knows:

1. DEAL – Two West Sugar Creek assets trade for $107.2 million.

The Dermot Co. acquired Addison Park, a 426-unit property, for $75.5 million. According to Charlotte Business Journal, Newmark Knight Frank represented seller Wateron in the sale. The firm purchased the community at 6225 Hackberry Creek Trail for $51.9 million in 2016.

Less than half a mile away, Covenant Capital Group purchased The Hamptons from Redwood Capital Group. The 180-unit asset, located on 17 acres at 8415 Unviersity Station Circle, traded for $31.7 million. The seller had bought the community in 2017 for $21.3 million.

2. FINANCING – Panorama Holdings scores $44.5 million construction loan.

Lumeo Apartments is a 314-unit project located on a 10-acre site in the University City neighborhood. JLL sourced the financing from Broadshore Capital Partners. Planned amenities include a pet spa, business center, swimming pool, clubhouse and fitness center. The project broke ground last year and is Panorama’s second multifamily development in the metro. Completion of Lumeo is scheduled for 2021.

3. DEAL – Gastonia townhouse community trades for $37.2 million.

Southwood Realty sold the 423-unit Ashbrook Village to ASG Equities. Capstone Apartment Partners represented the seller and procured the buyer. Built by the seller between 1985 and 1988, the community has 47 two-story buildings with one- and two-bedroom units ranging from 600 to 950 square feet. Amenities include a swimming pool, a clubhouse and two laundry facilities. Located at 2295 Pineview Lane, Ashbrook is 20 miles west of downtown Charlotte.

4. DEAL – Dasmen Residential sells 341-unit property for $47.7 million.

Urban Ministry Center acquired HillRock with a three-loan package. Bellwether Enterprise provided $31.6 million through Fannie Mae. The City of Charlotte also originated a $5.4 million mortgage, with Atrium Health funding an additional $5 million. Built in 1988, the community comprises 21 two- and three-story buildings with one- and two-bedroom units. Common-area amenities include a pool, fitness center and dog park. Located on 23 acres at 3317 Magnolia Hill Drive, HillRock is 7 miles from downtown Charlotte.

5. DEVELOPMENT – Luxury senior property opens in Charlotte suburb.

Watercrest Senior Living Group and Waypoint Residential opened Watercrest Fort Mill-Indian Land Assisted Living and Memory Care, a 107-unit community. Shiel Sexton was the general contractor for the project which broke ground in 2018. The three-story building has 75 assisted living and 32 memory care apartments ranging from 309 to 868 square feet. Amenities include a promenade, pool and playground. The property is located at 8154 English Clover Lane in Indian Land, S.C., 18 miles south of downtown Charlotte.

6. DEAL – Cortland acquires 309-unit property for $80.3 million.

The original developer of the asset, NRP Group, sold The Parkwood, now rebranded as Cortland NoDa, according to Charlotte Business Journal. The property has a mix of studio, one-, two- and three-bedroom apartments. Located next to the Parkwood light rail station at 1700 N. Brevard St., the community is within 2 miles of downtown Charlotte. Cortland owns 11 properties in the metro area.