Magma Equities Buys Value-Add Asset in Raleigh
- Nov 12, 2019
Magma Equities, a multifamily investment firm focused on repositioning Class B communities, has expanded its portfolio in the Raleigh-Durham area by snapping up a 199-unit apartment property in downtown Raleigh, N.C. The asset, University Apartments, changed hands in an off-market deal. Deaton Investment Real Estate represented the buyer.
READ ALSO: Magma Equities Debuts Seattle-Area Community
Located at 700 Ryan Court at the southern edge of North Carolina State University, the property has been owned by the family of the original developer since it was built in 1960. Members of the family have expanded the garden-style community in phases over the subsequent four decades, completing the final phase in 2003. As a result, the property lacks architectural consistency and many of the unit interiors remain in their original condition.
Magma Equities plans a multimillion-dollar improvement program to renovate all unit interiors and upgrade all building exteriors and common areas to create a modern community. The company is also weighing options to redevelop the existing site as medium-density student housing. As one of the last developable parcels within the City of Raleigh’s Avent Ferry Corridor Redevelopment Plan, the site has been reclassified for higher density in order to provide quality housing to both students and families.
The property currently offers two-, three- and four-bedroom floorplans within 40 townhouse-style residential buildings. Community amenities include a swimming pool, basketball court, picnic area and leasing office. Two single-family homes are also located on the low-density, 22.5-acre parcel.
Building a Southern portfolio
Magma Equities made its debut in the Raleigh-Durham multifamily market in February of this year and has since invested more than $60 million in the region with its capital partners, assembling a portfolio of more than 550 units. The company recently partnered with UK-based Henley Investments to acquire Arbor Crest, a 199-unity community at 5825 Pointer Drive in Raleigh.