Raleigh-Durham Multifamily Wrap-Up – April 2020

RST Development pays $66 million for Durham asset. DeWitt Carolinas grabs construction financing. Here is our April selection of Raleigh-Durham must-knows.
Lodge at Croasdaile Farm. Image courtesy of JLL

Although impacted by the ongoing pandemic, multifamily activity in Raleigh-Durham did not come to a complete halt in April. A number of investors expanded their portfolios in the market, with two major transactions topping the $50 million mark. Construction work also continued on several projects, and a new development in North Raleigh scored HUD financing to move forward.

The market has its share of challenges ahead, particularly with regard to unemployment and what this could mean for an asset’s rent rolls—North Carolina’s Department of Commerce reported 1.1 million jobless claims between March 15 and May 6. However, the state’s Supreme Court issued an order on April 2 which effectively delays eviction enforcement until June 1. Catch up on our April list of Raleigh-Durham must-reads: 

1. DEAL – RST Development pays $65.9 million for North Durham community.

A partnership between The David Cos. and Gemini Partners sold Lodge at Croasdaile Farm, a 320-unit property. Capital One provided a 12-year, $47.1 Fannie Mae loan for the acquisition, according to Yardi Matrix. JLL assisted the seller and procured the buyer. Located at 3130 Hillandale Road, the garden-style community opened its doors in 2019. The property has one- to three-bedroom floorplans. Amenities include a swimming pool, business center and community kitchen.

2. FINANCING – DeWitt Carolinas lands $33.2 million construction loan.

Greystone originated the HUD 221(d)(4) note, which matures in 2062 and includes an amortization period of 40 years, Yardi Matrix shows. The mortgage will fund the development of Litchford 315, a 240-unit project in North Raleigh. The developer acquired the 14-acre site at 6314 Litchford Road for $3.3 million, according to public records. The 10-building community’s amenities will include a swimming pool and a clubhouse. 

3. DEAL – Magma Equities purchases 312-unit property.

J.A. Fielden sold Independence Park for $50 million, according to Yardi Matrix data. The new owner financed the acquisition with a 10-year, $37.1 million Freddie Mac loan from Greystone. Located on 23 acres at 215 William Penn Plaza, the community’s 13 three-story buildings opened in 2009. Amenities include a dog park, a 1,200-square-foot fitness center, a swimming pool, laundry facilities and tennis, volleyball and basketball courts.