Raleigh Apartments Sell for Record $200,489-Per-Unit Price
- May 04, 2012
by Adriana Pop, Associate Editor
Kane Realty Corp. has sold the Park & Market Apartments at North Hills East in Raleigh for $82 million. Dallas-based Crow Holdings Capital Partners acquired the multifamily property at a Triangle record price of $200,489 per unit.
The Triangle Business Journal reports that Kane Realty developed the property in 2010. The complex includes a mixed-use building featuring 409 apartment units as well as 96,257 square feet of multiple ground-level retail spaces which have not been included in the transaction.
CBRE Group Inc. represented the owner in the sale of the multifamily component of Park & Market and procured financing for the purchase. Through a $22 million loan from Goldman Sachs Commercial Mortgage Capital, CBRE also arranged the recapitalization of the retail portion of the asset, which remains under Kane Realty’s ownership.
CBRE professionals who worked on the transaction include, from Investments, Malcolm McComb in Atlanta, Phil Brosseau and Mark Burkhard in Charlotte and Jeff Glenn in Raleigh; and, from Debt & Equity Finance, Steve Heffner in Charlotte, Michael Riccio in Hartford and Mark Fisher in New York.
According to the NewsObserver, the previous Triangle record was registered in 2011, with the sale of the Oberlin Court apartments in West Raleigh, for approximately $180,000 a unit. The new record is an indication of the viability of the Triangle apartment market, which has experienced steady rental growth in recent years.
Developer John Kane told the newspaper that the asset’s sales price is a validation of North Hills’ success. The complex is located in an area that experienced a 7.8 percent rent increase in the past year. As of March, the building’s occupancy rate was 91 percent, with rents ranging from $1,030 for a studio, to approximately $1,700 for two-bedroom units.
Photo credits: http://www.parkandmarketnorthhills.com