Raleigh-Durham Multifamily Wrap-Up – August 2020

Luxury apartments trade for $65 million. Cortland JV buys 205-unit community. Here’s our August selection of Raleigh-Durham must-knows.
The Lincoln. Image courtesy of JLL

During the first half of August, the number of new coronavirus infections in North Carolina began to decrease, but the caseload picked up again in the second half of the month. In an effort to help residential tenants, state authorities reserved $175 million for rental assistance, divided between three separate programs which will begin taking applications in September. However, even with the state still in its second phase of reopening, life has not come to a standstill in Raleigh-Durham. The metro’s multifamily sector saw a healthy amount of investment activity in August, particularly in urban areas. Check out our August list of Raleigh-Durham must reads: 

1. DEAL – Upscale property changes hands for $48.8 million.

Banner Real Estate Group completed the disposition of The Lincoln, a 224-unit community, to a private investor. JLL provided $36.1 million in acquisition financing, according to Yardi Matrix. The Freddie Mac note matures in 2032. Located on 2 acres at 408 E. Hargett St., the building was completed in 2015. The unit mix has studio, one- and two-bedroom floorplans and amenities include a swimming pool, gym and coffee bar.

2. DEAL – Artesia sells Raleigh community for $10.4 million.

A private investor acquired the Capital Flats & Magnolia Square, an 85-unit property downtown at 500 E. Hargett St., according to Triangle Business Journal. The buyer funded the purchase with an $8.1 million Fannie Mae loan secured by Colliers International, Wake County records show. Originally built in 1982 as affordable housing for seniors, the community was converted in 2019 after Artesia executed an extensive capital improvement plan.

3. DEAL – Leon Capital Group sells 205-unit suburban asset.

A joint venture between Cortland and Round Hill Capital paid $49.2 million for Cortland Cary, public records show. Walker & Dunlop originated a 12-year, $29.5 million Freddie Mac loan for the purchase. Located at 1106 Scenic Club Drive, the property opened its doors in 2019. The unit mix has studio and one- to three bedroom apartments.

4. DEAL – Snell Properties pays $65 million for luxury apartments.

Banner Real Estate Group sold The Metropolitan, a 241-unit property in Raleigh’s city center, according to Triangle Business Journal. Located on a 2-acre parcel at 314 W. Jones St., the building was completed in 2019, after a fire at the site caused a two-year delay for the $54 million project. The community has studio, one- and two-bedroom units, with sizes between 556 and 1,515 square feet.