LEED Silver Multifamily Property Sold for $74M
- Jul 27, 2012
Post Properties Inc. has acquired Circle at South End from Crescent Resources in one of Charlotte’s priciest multifamily transactions. Post paid $74 million, or $205,555 per unit, for the property, which it immediately re-branded as Post South End.
The 360-unit property is located in the Queen City’s South End neighborhood in the proximity of Charlotte’s Lynx Blue Line light rail service. This proximity makes the property highly attractive to young professionals, as the Blue Line serves Uptown—one of the major employment hubs in the city.
This seems to be one of the most important reasons behind the purchase, as Post Properties CEO Dave Stocker declared in a press release: “The Charlotte apartment market is performing very well, and we are pleased to add a high quality, well-located community to the Post portfolio in that city. Post Sound TM provides access to transit and a mixed-use environment that appeals to the young, educated professionals we look to attract and retain as our residents.”
The mixed-use environment that Stocker referred to are the 7,612 square feet of retail space that are 100 percent leased to three restaurant and bar venues.The apartment community itself is currently 95 percent leased.
Built in 2009, the community features one-, two and three-bedroom units, as well as studio apartments. Stainless steel appliances, custom-designed cabinets and sinks and private patios come with every unit. One of the main attractions of the community is the Resident Lounge, outfitted for billiards, playing video games and watching movies. It also features a gourmet kitchen. Post South End features a pool and poolside grilling stations, and residents have access to courtesy bicycles.
Courtesy bicycles are only a part of the property’s green elements that contributed to the LEED Silver rating it received in 2010. The community, built with a considerable percentage of recycled materials, implements water-efficient landscaping and water-conserving fixtures, while being outfitted with energy-efficient appliances. The community is also 100 percent smoke-free.
Sarofim Realty Advisors was Crescent Resources’ capital partner in Circle at South End. CBRE Group represented Crescent in the sale. Post funded the purchase with cash.
The buyer expects the yield of the first year of ownership to be 5 percent, following a 3 percent management fee and $300 per unit reserves.
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Chart credit: Marcus&Millichap
Photo credit: Circle at South End’s Facebook profile