Multifamily investment firm Magma Equities (Magma) in partnership with Viking Partners has acquired University Apartments, a 359-unit apartment community located in the Duke submarket of Durham, NC, in an off-market transaction for $42.4 million.
Magma has been one of the most active apartment buyers in the Raleigh-Durham MSA, having acquired 12 properties since entering the market in February 2019. University Apartments is the Los Angeles-based firm’s fifth acquisition in the MSA this year alone and increases its local multifamily portfolio to more than 3,600 units.
“We’ve cultivated strong relationships with brokers and property owners in the market which has enhanced our ability to rapidly expand our footprint in the market over the last two years,” said Managing Principal Ryan Hall.
University Apartments’ studio, one- and two-bedroom apartments are housed in 20 two- and three-story residential building buildings on 12 acres at 1500 Duke University Road. Community amenities include two 24-hour fitness centers, two swimming pools with sundecks, grills and an outdoor fireplace. The location offers easy access to both the Duke and Durham transit lines. Magma plans to initiate a capital improvement plan to upgrade both the unit interiors as well as the community areas.
Located just steps from Duke University and Duke University Hospital, the property is less than a half mile from Highway 147, The Triangle Expressway, providing convenient access to Research Triangle Park, the region’s most prolific employment center; as well as Raleigh-Durham International Airport and downtown Durham and Raleigh. University Apartments is approximately 10.3 miles from the recently announced Apple Campus & Engineering Hub, a $1 Billion future development that will create 3,000-plus new jobs.
“Over the past two decades, Raleigh/Durham has evolved into a thriving hub for businesses up and down the East Coast, becoming one of the country’s top regions for technology, research and development,” said Magma’s Scott Ogilvie, who led the acquisitions effort along with Hall. “The infusion of new businesses into the area has created a growing need for quality housing which is why we continue to seek out and acquire assets in this market,” added Hall.