Trade Street to Acquire Pair of Luxury Apartment Properties
- Mar 07, 2014
Aventura, Fla.—Trade Street Residential, Inc. has announced it plans to acquire two apartment communities with a combined 502 units, one in Raleigh, N.C. and the other in suburban Atlanta. The combined purchase price will be $73.2 million. Closings are slated for March and April of this year.
The first property to be acquired is Waterstone at Brier Creek, a 232-unit Raleigh, N.C. apartment community to be purchased for $32.7 million. The community offers private patios and balconies, nine-foot-high ceilings, gourmet kitchens, stainless steel appliances, walk-in closets, higher-end wood grain flooring and a variety of floor plans.
Waterstone at Brier Creek’s common-area amenities include a fitness center and salt water swimming pool, leisure courtyards and pet parks.
The property was completed in February 2014, and is near the downtown districts of both Raleigh and Durham. Trade Street Residential obtained a mortgage of $16.3 million for eight years at a fixed rate of 3.7 percent, paying interest only for the full term of the loan.
Next month, Trade Street intends to acquire the 270-unit Waterstone at Big Creek in Alpharetta, Ga. for a purchase price of approximately $40.5 million. The property offers renters an assortment of luxury one-, two- and three-bedroom apartments with private patios or balconies, stainless steel appliances, granite countertops and wood-style flooring.
Residents can avail themselves of a high-tech fitness center, resort-style salt water swimming pool and lounge area, or stroll handsomely-manicured grounds.
Offering easy access to downtown Atlanta, Waterstone at Big Creek also is close to many upscale retail settings. Construction was completed in November 2013. Trade Street Residential intends to use cash on hand and its current revolving credit facility to fund the purchase.
“We are excited to announce the planned addition of these two well-located, luxury apartment communities,” says Trade Street Residential interim CEO Richard Ross. “The acquisition of these properties further expands our portfolio and strengthens our position in two of our core markets. With our strengthened balance sheet and attractive sources of financing in place, we will remain disciplined with our capital and continue to opportunistically grow our presence across the Sunbelt with high-quality, luxury communities, while remaining focused on improving our operating metrics and increasing our cash flow.”
Adds Ryan Hanks, Trade Street Residential chief investment officer: “The addition of these two newly constructed apartments will further reduce the average age of our portfolio to 11 years, and provide an attractive opportunity for us to improve occupancy levels and rental rates in strong markets. The greater Raleigh-Durham and Atlanta metropolitan areas are each experiencing rapidly-expanding populations and employment levels that support improving portfolio operating metrics over time. We look forward to integrating these properties onto our platform upon respective acquisition closings.”