The locally based Creekstone Partners, a division of Creekstone Cos., was created earlier this year to acquire and manage multifamily and commercial real estate assets. The firm paid about $50 million to Cincinnati-based Western and Southern Life Insurance Co. for Jackson Square at the Hermitage and Polos on Park, both located in Tallahassee, FL. The insurance company was represented by NAI Eagle in Cincinnati.
Sitting on 16 acres at 1767 Hermitage Blvd., Jackson Square is a garden-style apartment complex built in 1996. It boasts 242 units with one-, two- and three-bedroom floor plans that range from 661 sf to 1,280 sf and rent for $745 to $1140 per month. It was 95% occupied at closing.
The 98%-leased Polos on Park at 2626 East Park Ave. is an 81-acre, garden-style complex built in 1999. Its 440 units are one-, two- and three-bedroom floor plans ranging from 745 sf to 1,196 sf. Monthly rents range from $730 to $1060.
"We're really excited about the Tallahassee market," says Marc Goldstein, principal and co-founder of Creekstone Partners. "We see real growth in the market because of the stable and growing renter base" Demand, he adds, comes from being in the capital city and close to universities.
Creekstone's third purchase is Parkside, a 300-unit complex on 20 acres in Charlotte, NC. The firm paid roughly $20 million to Boston-based Centremark Properties for the five-year-old, gated property at 605 Candler Lane. The one-, two- and three-bedroom units range from 704 sf to 1,273 sf, with rents ranging from $685 to $1015 per month. It is 93% occupied.
"Parkside is our first acquisition in North Carolina," Goldstein says. "We think we picked it up at a real value." He adds the Creekstone Partners paid about 20% below replacement cost for the asset. Neither Centremark nor Creekstone Partners had broker representation for the deal.
Goldstein tells GlobeSt.com that Creekstone Partners is under contract to acquire another community in North Carolina--a class A asset in Raleigh-Durham. The company has 12 other properties that are under contract and scheduled to close this year.
According to Goldstein, PNC Bank provided financing for all three acquisitions. "It was the first time to work with PNC and we were very impressed," he says about five-year, fixed-rate conduit loans, with 70% to 75% LTVs, and an interest-only payment for one year.
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