IRT Acquires Memphis, Raleigh Apartment Communities
- Sep 10, 2014
In two separate deals, Independence Realty Trust Inc. has acquired The Walnut Hill Apartments in Memphis, Tenn., for $27.9 million and the Lenoxplace at Garner Station Apartments in Raleigh, N.C., for $24.3 million.
IRT is externally advised by a wholly owned subsidiary of its sponsor, RAIT Financial Trust.
Located at 8920 Walnut Grove Road, Walnut Hill Apartments is situated on 23 acres in the Memphis submarket of Cordova. The 360-unit community consists of 84 one-bedroom, one-bathroom apartments; 228 two-bedroom, two-bathroom units; and 48 with three bedrooms and two bathrooms, with an average unit size of 1,087 square feet.
The apartments feature nine-foot ceilings, gas log fireplaces, full-size washers and dryers, and French doors leading to private balconies or patios. Community amenities include two pools, a racquetball court, tennis courts, a 24-hour fitness center, a cyber lounge and a conference center.
The property was built in 2001 and was 96 percent occupied at the time of the sale.
According to a recent report by CB Richard Ellis, the rental market in Memphis is on the upswing. “The rental market in Memphis continues to move in a positive direction,” Blake Pera, executive vice president for CB Richard Ellis-Memphis, said in a company release. “Occupancies have increased compared to the previous quarter, as have rents in most locations.”
Overall occupancy for the Memphis market was 92.3 percent in the second quarter, up from nearly 91 percent in the first quarter. The second quarter showed absorption levels at 685 units, up from 248 units in the first quarter. Average market rents increased 0.8 percent to $765.
Located at 1100 Lenoxplace Circle, the 266-unit Lenoxplace at Garner Station Apartments offers one-, two- and three-bedroom apartment homes that feature smart layouts, washer/dryers, vaulted ceilings, energy-saving appliances, and spacious patios and balconies. Community amenities include a swimming pool and sundeck, fitness center, clubhouse and more.
Built in 2001, the property was renovated between 2011 and 2012. At the time of the sale, it was 96 percent occupied.
The property is ideally located near the employment hub of Downtown Raleigh and is within minutes of downtown, WakeMed Medical, North Carolina State University, Wake Technical Community College, I-40 and I-440.
The purchase was funded with a portion of the net proceeds of IRT’s offering of its shares of common stock, completed in July 2014.
RAIT Residential, a RAIT subsidiary, will provide the property management services for both communities.