Durham, N.C.—1520 Magnolia, an apartment community located at 1101 Exchange Pl. in Durham, N.C., has traded hands. The 280-unit property sold for $31.6 million.
1520 Magnolia was constructed in 2001. Amenities include a 24-hour fitness center, on-site laundry facilities, pool with a sundeck, a two-mile jogging trail, and concierge services. The units include double crown molding, 9-foot ceilings and built-in bookshelves and desks.
Marc Robinson and Jordan McCarley of Multi Housing Advisors’ Charlotte office represented the seller, Columbia, S.C.-based Estates Inc. The buyer, which was not represented by a broker, was Nashville-based Carter Haston.
Greater Raleigh-Durham is a rapidly expanding apartment market. According to NAI Earle Furman, more than 7,300 apartment units were under construction in the market as of the first quarter of 2013; previously, construction hadn’t topped 7,000 units in the market since 2001. Nationwide, only Austin currently has more multifamily rental product under way.
The growth in inventory might help further slow potential rent increases in the market, NAI Earle Furman posits. Year-over-year rent growth market-wide came in at a 10-quarter low of just 2 percent in 1Q13, the company notes. The slowdown was especially apparent in units built since 2000, which saw occupancy cool 0.5 points over the past two quarters and posted annual rent growth of 1.2 percent.