Sterling Group Lands Equity for Sun Belt Assets

Sterling Group has landed programmatic equity for the recapitalization of three communities in Charlotte, N.C., Indian Land, S.C., and Knoxville, Tenn., totaling 875 units. Berkadia secured the equity partner, TPG Real Estate, public records show.

Managing Directors Cody Kirkpatrick and Noam Franklin, along with Senior Managing Director Chinmay Bhatt, led the Berkadia team that facilitated the deal. The same trio was recently involved in securing $56 million in equity for two Phoenix developments slated to come online in 2024.

Prior to this deal, the three assets were subject to $117.7 million in HUD loans, according to Yardi Matrix data. Sterling Group developed the properties between 2014 and 2021.

Three Sun Belt rental communities

The Charlotte asset, Apartments @ Eleven240, incorporates 271 units that include one-, two- and three-bedroom floorplans, ranging from 687 to 1,559 square feet. All apartment interiors feature in-unit washers and dryers. Community amenities encompass a swimming pool, clubhouse, fitness center and waterscape, as well as 462 parking spaces. Located at 11240 Woolwich St., the property is near interstates 77 and 485, placing it approximately 11 miles from downtown Charlotte.

The 15-building Enclave at Bailes Ridge offers similar common-area amenities, along with a business center and a playground. The community comprises 246 one-, two- and three-bedroom units, averaging 1,020 square feet. Situated at 1004 Bailes Ridge Ave. in Indian Land, the site is right off Highway 160 and roughly 21 miles south of Charlotte.

Wellsley Park at Deane Hill is the largest property in the portfolio, encompassing 358 units that average 1,114 square feet. It shares similarities with the other two communities in terms of layouts and the amenities it features. Located at 7300 Sir Walter Way, it is near Interstate 75 and about 8 miles from downtown Knoxville. The surrounding area offers several retail and dining options.