IMG Expands North Carolina Portfolio with $94M Buy

The firm has expanded its holdings in South Charlotte with the purchase of Whitehall Estates and Stone Ridge Apartments.
Whitehall Estates. Image courtesy of IMG

Citing the area’s job and population growth, Investors Management Group (IMG) has acquired two apartment communities in South Charlotte, N.C.¸ for a combined price of $94 million from Gamma Real Estate. The investment firm purchased the 252-unit Whitehall Estates and 318-unit Stone Ridge Apartments and plans to continue renovations already in progress.

Jordan McCarley from Cushman & Wakefield brokered the deal. Between the two purchases, 12 investors acquired ownership through 1031 exchanges.

Gamma Real Estate acquired the properties as a portfolio in February 2017 for a total of $74.1 million, according to Yardi Matrix data. Prior to Gamma Real Estate, YFP Development had owned the properties since October 1996.

IMG is planning to invest more than $7,500 per unit at the garden-style apartment properties. Whitehall Estates, which has one-, two- and three-bedroom units on an 18.7-acre property, was built in 1996 and has 93.3 percent occupancy, according to Yardi Matrix. Stone Ridge Apartments, which has one-, two- and three-bedroom units on a 24.5-acre property, was built in 2001 and has 95.3 percent occupancy, Yardi Matrix reports.

IMG will be installing new flooring, countertops, kitchen appliances and washers/dryers in the apartments. Common area improvements will include updating playgrounds, pools areas, landscaping and signage. Both properties have a fitness center, on-site car care center and playgrounds. Stone Ridge Apartments also has a business center, clubhouse, putting green, two pools and a spa while Whitehall Estates also has tennis and volleyball courts and a swimming pool with spa. Rents at Stone Ridge Apartments range from $924 to $1,411 with an average of $1,090 while rents at Whitehall Estates range from $1,063 to $1,496 with an average of $1,271, according to Yardi Matrix data.

 Growing Portfolio

Neil Schimmel, IMG founder & CEO, said in a prepared statement IMG has been bullish on South Charlotte based on the area’s consistent population, job growth and rental affordability. He noted Charlotte’s growth as a financial tech sector has been drawing a younger demographic to the region. Schimmel said purchases of Stone Ridge and Whitehall Estates brings IMG’s total acquisitions in North Carolina to 10 over the past five years. In March 2019, IMG acquired the 324-unit Canopy at Baybrook in Charlotte for $45.5 million from Fairfield Residential.

The firm has an investment portfolio of about 1,800 units in the state now and has more than $530 million in apartment assets across the United States. In July, IMG purchased Amber Mill Apartments, a 264-unit community in Duluth, Ga., for $35.1 million from Waypoint Residential and rebranded it as Amberlake Village.