Continental Realty Corporation (CRC), a Baltimore-based real estate investment and management company active in 10 states, has purchased its eighth multifamily community in North Carolina with the recent $96.3 million acquisition of Sycamore at Tyvola, located at 707 Sycamore Centre Drive in Charlotte. Developed by Switzenbaum & Associates and delivered in December 2018, the 288-unit four-story elevator-serviced community was 95.5 percent leased at the time of this transaction. As part of the acquisition, CRC will assume the in-place 40-year amortizing fixed-rate HUD loan at a 2.96 percent interest rate with a mortgage insurance premium. Michael Saclarides of Cushman &Wakefield represented the seller.
This is the second asset purchased on behalf of the Core Multifamily Fund, LP, a private equity fund sponsored by CRC. The open-ended fund, focused on stabilized or near-stabilized opportunities, was formed to identify and acquire Class “A” garden and mid-rise communities located in the southeastern United States with top-quality finishes and amenities. The Core Multifamily Fund completed its initial Founders Investor Closing last year, raising approximately $145 million. CRC subsequently acquired St. Mary’s Square North Apartments, a 65-unit multifamily community in downtown Raleigh for $36.5 million last summer.
Through its various funds, CRC has acquired more than $1.2 billion worth of retail and multifamily assets in the last 10 years. In total, CRC owns and self-manages over $3.3 billion in real estate nationally, with heavy concentration in the Southeast.
With this acquisition, CRC owns and self-manages approximately 1,600 apartment units throughout North Carolina, with three multifamily communities in Charlotte, including The Flats at Ballantyne and Park & Kingston. Additional North Carolina assets include The Edison Lofts, St. Mary’s Square, The Village Apartments and St. Marys Square North Apartments in Raleigh, and The Reserve at Mayfaire in Wilmington.
Low density, large apartment units, patented building design
Located west of Interstate 77 with frontage on Tyvola Road, Sycamore at Tyvola consists of one- and two-bedroom floorplans. With average unit sizes of 1,042 square feet, the property has among the largest units within its competitive set. The unique building design provides twice as many corner units as traditional multifamily product and delivers better exterior views and increased sunlight for its residents. This design differentiates the property from traditional three-story walk-up multifamily properties. In addition, the apartment community sits on 31 acres. The 9 units per acre is 70 percent less dense than most of the competitors providing residents with plenty of open space.
Each unit features nine-foot ceilings with crown molding and best-in-class interior finishes. These unit features include a stainless-steel appliance package, granite countertops, kitchen islands with bar-top seating, wood-style plank flooring, panoramic windows, and full-size washer/dryers in a dedicated laundry room inside the apartment.
Community amenities within the gated community include a large resident clubhouse, a state-of the-art fitness center which is open on a 24/7 basis, an event space, spin studio, yoga and barre room, conference room, business center and secure digital package-acceptance lockers. Outdoor amenities include a swimming pool with sun shelf, poolside lounge, tennis court, putting green, BBQ area, grilling pavilion, fire pit, dog park and wooded walking trails.
Asset situated within vibrant, amenity-rich corridor
“Sycamore at Tyvola is standout product from a best-in-class developer and is located within a rapidly growing submarket of Charlotte. The property is being acquired with an in-place loan, providing long-term fixed rate financing well below current market rates,” stated Ari Abramson, CRC’s Vice President of Acquisitions. “Sycamore at Tyvola is in a logical path of growth submarket to the south of Uptown and South End and to the north of White Hall and Berwick.”
“Sycamore at Tyvola was constructed as a generational long-term hold resulting in design features that are above market standards,” stated JM Schapiro, CRC’s CEO. “The developer’s building design along with the location and superior amenity package, truly differentiates the subject property from other properties in the area. With the long-term investment profile of the Core Multifamily Fund, this is a prototypical deal for this fund.”
Overview of $144 million Core Multifamily Fund
Core Multifamily Fund, CRC’s seventh fund, is focused on acquiring newly developed properties constructed between 2018 and 2022 in high-growth suburban and urban markets throughout the Southeast, including Charleston, Charlotte, Nashville, Raleigh, Orlando, and Tampa.
“Our first two acquisitions for the Core Multifamily Fund are located in North Carolina, and based on shifting population, corporate relocations, enduring job growth and overall positive economic conditions in Southeast markets. Our vertically integrated team will continue to survey the region for compelling long-term hold opportunities,” Schapiro said. “The fundamentals continue to top the charts in the Southeast, with relocations due to cost of living and quality of life. Through our innovative use of data analytics, we have seen a migration to the Southeast from other areas of the country and can calculate this impact on the pace of absorption of newly delivered assets.”