Jefferson Apartment Group, STARS REI Announce First North Carolina Acquisition with 501 Estates

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501 Estates
Built in 2001, 501 Estates offers a park-like setting and features 270 units in a mix of 1-, 2- and 3-bedroom apartments across eight garden-style buildings, 49 townhomes, and 41 cottages – both of which are available as 2- or 3-bedroom homes with garages. Unit sizes range from 828 square feet to 1,568 square feet. The rental townhomes and cottages are a differentiator in the Southwest Durham area.

Jefferson Apartment Group (JAG), with STARS REI (Stars), continues to build a presence in North Carolina with the acquisition of 501 Estates, an established multifamily community in Durham central to Duke University and University of North Carolina.

“We’re excited to grow our regional operation based in Charlotte,” said JAG Chief Executive Officer James Butz. “501 Estates is a unique 33-acre community with tremendous appeal.” With its ease of access to major employment centers in Research Triangle, its diverse product types, and prime location adjacent to a nature preserve providing tree-lined views, “501 Estates is the full package,” Butz said.

The acquisition also marks Stars’ first investment in the region.

“We’re pleased to have successfully closed on 501 Estates, after months of conversations and closely monitoring the Raleigh-Durham market for the past few years,” said Stars Associate Felipe Lattapiat. “We have strong belief in the region’s fundamentals and its long-term performance, and this acquisition aligns with the demographics we favor within the Triangle. We’re looking forward to continuing to expand our footprint in the area.”

501 Estates
More than 60 percent of the units at 501 Estates have been fully renovated with plank flooring, granite counters, stainless steel appliances, double vanities, and more modern touches. JAG will continue the renovation program and expects all units to be fully upgraded by 2025.

501 Estates is located at 240 Ivy Meadow Lane in a premier pocket of Southwest Durham off highway 15-501, the connector road between Duke University (10 minutes) and University of North Carolina (15 minutes). The community is 1.5 miles east of Interstate 40, which provides easy access to Research Triangle Park (15 minutes).

501 Estates
Completed renovations have also brought top-of-market amenities, including substantial clubhouse upgrades, a new 3,000-square-foot freestanding fitness center, a refinished resort-style pool, new covered pavilion with outdoor kitchen and fireplace lounge, a new pet spa, and a second dog park featuring agility equipment.

A strong employment base surrounds the community, including the universities, hospitals, and a growing number of tech companies such as Amazon, Apple and Google, as well as life science companies such as Biogen and Novartis Gene Therapies.

“The Raleigh-Durham metro is a leading area for employment growth on the East Coast, which is driving increased demand for housing,” said Butz. “501 Estates is a strong opportunity to capitalize on the conversion of a core-plus community to Class A in a trending market. And we’re pleased to be furthering our partnership with STARS REI on this acquisition.”

The acquisition marks JAG’s first active units in the Tar Heel State. Following next will be J Optimist Park in Charlotte, its first new development in the region with construction already underway and delivery anticipated for next fall.