Jackson, Miss.—StoneRiver Co. has acquired the 280-unit Tracewood Apartment Homes in Jackson, in the city’s Northeast submarket. The Birmingham, Ala.-based buyer paid about $14.2 million for the property.
The acquisition marks StoneRiver’s first foray into Mississippi. According to the company’s director of investments, Josh Mandell, Tracewood fits into StoneRiver’s “strategy of acquiring and upgrading solid assets in irreplaceable locations.”
In pursuing that strategy, the buyer will invest in upgrading the property’s interiors with new flooring and kitchen and bath finishes, as well as repairing roofs and siding on the exterior. According to StoneRiver, Tracewood’s occupancy has historically been in the mid-90 percent range.
Jackson has lagged most other markets in multifamily development in recent years, but there’s an upside to that. IRR notes in the 2016 Viewpoint, its annual real estate trends report, that while markets like
Atlanta; Raleigh; and Washington, D.C., are exhibiting “hypersupply conditions,” Jackson is the only apartment market in the SE that’s still in recovery, “but nearing the expansion phase.”
Capital One provided debt financing for the Tracewood deal via a Fannie Mae loan origination. Rock Apartment Advisors and CBRE Memphis brokered the transaction.