NC Rental Property Trades for $21M
- Feb 19, 2019
Arcan Capital has acquired Village 1373, a 332-unit, garden-style community in Greensboro, N.C., for $21.3 million from Southwood Realty, per Yardi Matrix information. Hunt Real Estate Capital has originated a $21 million, three-year acquisition and renovation loan for the buyer, according to Guilford county recorded documents.
Located at 1373 Lees Chapel Road, the property formally known as Northwinds is less than 6 miles from downtown Greensboro. The community offers one-, two- and three-bedroom apartments in 17 three-story buildings. Amenities include two pools, a fitness center, a tennis court and a playground. The asset had an 89.5 percent occupancy rate as of January.
Arcan intends to use the Hunt-originated financing to upgrade the interiors, exteriors and common areas. “While the former owner maintained the property, it has not undergone any renovations or improvements for the past 11 years,” said RJ Guttroff, managing director at Hunt, in prepared remarks. “Upon acquisition, the new owners will rebrand the property and implement a capital improvement plan exceeding $4 million to upgrade and reposition the property.”
Interior renovations will include granite countertops, new cabinets, painting, stainless steel appliances, wood-vinyl plank flooring and fixtures. Exterior and common-area improvements will include security gate, replacing and painting exterior siding, replacing doors and windows, asphalt and roof access repairs. Amenities that will benefit from upgrades will be the fitness center, clubhouse and pool area.
“The borrower will renovate unit interiors as they turn with a goal of maintaining occupancy during the renovations, as they are planning to upgrade apartments at a rate of 11 per month,” added Guttroff.
In late January, Hunt originated a $19.5 million Fannie Mae loan to finance the acquisition of the 280-unit Blunn Creek Apartments in Austin, Texas.
Image courtesy of Yardi Matrix