Crescent’s $700M Multi-Family Portfolio Sale Includes Three New Triangle Apartment Communities
- Nov 13, 2014
by Adriana Pop, Associate Editor
Crescent Communities has announced plans to sell a portfolio of nine new apartment communities in North Carolina, Florida and Georgia, for a total of approximately $700 million.
Three of the properties included in the sales transaction are located in the Triangle: the 282-unit Crescent Cameron Village in Raleigh that recently opened; the 303-unit Crescent Ninth Street in Durham that opened in July; and the 208-unit Crescent Main Street in Durham, currently under construction.
According to the Triangle Business Journal, these communities are valued at about $250,000 per unit. The Triangle’s current record-holder is the Park & Market apartment property at North Hills that sold in 2012 for $200,489 per unit.
The buyer of the three Triangle communities is an unnamed private institutional investor. The entity is also purchasing Crescent Dilworth in Charlotte, as well as Crescent Howell Mill and Crescent Terminus in Atlanta.
A fund advised by UBS Global Asset Management is the buyer of the remaining three properties included in the portfolio sale. The entity has already closed on the acquisition of the 367-unit Crescent Bayshore property in Tampa for $111.5 million, or $303,814 per unit, and will also be purchasing Crescent Central Station in Orlando, and Crescent SouthPark in Charlotte.
Upon closing within the next 12 to 18 months, the entire sales agreement, which was finalized prior to completion of property construction, will be the largest transaction to date of a multifamily portfolio within Crescent’s markets in the Sunbelt and Mid-Atlantic area.
A CBRE team led by Malcomb McComb, vice chairman of CBRE’s Investment Properties Group in Atlanta, represented Crescent in the transaction.
“This portfolio was more than four years in the making and entailed thoughtful, deliberate selections of location and design for each community,” Brian Natwick, president of the Crescent Communities Multifamily Group, said in a news release. “As demonstrated by this very successful transaction, investors recognize that our strategic investments in creating superior multifamily properties can provide significant long-term capital growth opportunities.”
“Crescent Communities’ landmark transaction is a reflection of the company’s position as an industry leader in developing world-class communities that capture the housing and lifestyle preferences of today’s consumers,” added CBRE Vice-Chairman Malcolm McComb. “Buyers have found that the opportunity to invest in quality properties in some of the nation’s highest growth markets makes Crescent’s properties especially appealing.”
Photo credits: Crescent Communities
For our most recent multi-family, office and industrial market snapshot for the Triangle area, click here.