Sterling Group Acquires Value-Add Raleigh Apartments
- Oct 20, 2015
Raleigh, N.C.—The Sterling Group Inc., an Indiana-based multifamily and self-storage development and investment specialist, recently re-entered the Raleigh market with its purchase of Arbor Creek Apartment Homes. The company paid $17.1 million for the property.
The property is a 280-unit garden-style apartment community on about 24.8 acres. Arbor Creek Phase I was built in 1972 and consisted of 180 units, and in 1974, another 100 units were added. Arbor Creek is comprised of 20 buildings containing a mix of one- and two-bedroom floorplans. Floorplans range from 600 square feet to 810 square feet.
The buyer is undertaking an estimated $1.8 million in renovations. Plans include remodeling the leasing office, replacing and improving exterior building elements, landscaping, signage, and lighting. Curbs will be replaced and breezeways will also be renovated.
New features at the property will include a dog park, playground, and grilling stations. Interior renovations will include a rehab to include new two-tone paint, new flooring, new appliances, upgraded lighting and electrical fixtures, upgraded plumbing fixtures and some new kitchen cabinets.
Located on Buck Jones Road, along the I-40/I-440 perimeter corridor, Arbor Creek is five miles west of Raleigh’s CBD, but actually closer to downtown Cary. Sterling President Lance Swank characterized the property as a good location with excellent visibility, and an opportunity to increase value through capital improvement.