New-to-Triangle Militello Capital Buys Chapel Hill Apartments
- Jun 02, 2015
by Adriana Pop, Associate EditorThe Villages of Chapel Hill, a 321-unit multifamily apartment community in Carrboro, has recently been purchased by an out-of-state investment group.
According to the Triangle Business Journal, a partnership between QR Capital of Atlanta and Militello Capital of Leesburg, Va. paid $29 million to acquire the property. The investors also plan to spend an additional $2 million in upgrades, which will sustain higher rental rates comparable to other renovated communities in the market.
The seller, Greystar, was represented in the transaction by Phil Brosseau, Kevin Kempf and Jeff Glenn of CBRE’s capital markets group.
Built in 1985, the smoke-free community offers a mix of one-, two-, and three-bedroom units, along with a variety of amenities, including a fitness center, two swimming pools, bark park, picnic area, playground, sand volleyball court and tennis court. Rents here range from $685 per month for a studio apartment to $1,584 per month for a three-bedroom apartment.
The complex is located at 1000 Smith Level Road, in proximity to North Carolina’s Chapel Hill campus and Research Triangle Park. It is also surrounded by retail shopping and historic neighborhoods, and offers access to quality public schools.
For Militello, the acquisition marks the private equity firm’s largest real estate investment to date. The company, which also invests in emerging technology venture capital, owns seven other multifamily communities in the Southeast region.
“As our largest acquisition to date, The Villages of Chapel Hill is an exciting development for Militello Capital,” Matt Brady, co-founder & COO of Militello Capital, said in a news release. “The property satisfies our key requirements with built-in demand drivers while situated in a supply constrained market. It is a perfect addition to our real estate portfolio of income-producing properties.”
According to CBRE Econometric Advisors, the Chapel Hill submarket recorded an occupancy rate of 95.4 percent during the first quarter 2015, higher than the overall market’s average of 94.7 percent. New inventory has also been limited, with only three conventional apartment developments coming online since 2010.
Photo credits: www.villagesofchapelhill.com