JV Buys Durham Community for $42M

Greystone provided $38.2 million in acquisition financing for the 359-unit property near Duke University.
University Apartments. Image courtesy of Magma Equities

Magma Equities and Viking Partners have acquired University Apartments, a 359-unit community in Durham, N.C. for $42.4 million from Capstone Real Estate Investments. The transaction marks Magma’s fifth purchase in the Raleigh-Durham metro since the beginning of the year.

According to Yardi Matrix, the partnership secured a $38.2 million loan for the acquisition from Capital One. Greystone originated the permanent financing.

University Apartments encompasses studio, one- and two-bedroom units with floorplans averaging 633 square feet. The asset is located at 1500 Duke University Road and comprises 20 two- and three-story buildings across a 12-acre site. The pet-friendly community features two fitness centers as well as two swimming pools, sundecks, grills and an outdoor fireplace. The new owners intend to renovate the property by upgrading apartment interiors and updating shared spaces.

University Apartments places residents less than a mile from Duke University and U.S. Highway 147, less than 2 miles from Duke University Hospital and Wallace Wade Stadium. The community is roughly 10 miles from Apple Campus & Engineering Hub, a $1 billion project which will eventually create an estimated 3,000 jobs.

Earlier this month, the joint venture paid $15 million for a 146-unit community in Knoxville, Tenn. The owner plans to begin capital improvements at the property later this year.