RALEIGH, NC-Federal Capital Partners and Grubb Properties announced a joint venture investment in two apartment communities located in Raleigh and Chapel Hill, NC. Valued at $42 million, the new venture includes Riverwoods apartments located on Six Forks Road in Raleigh and the Glen Lennox apartment community on Hamilton Road in Chapel Hill.
Jason Nettles of Holliday Fenoglio Fowler, L.P. represented the seller, Dilweg Companies of Durham, NC, in the Riverwoods transaction. Andrea Howard, senior vice president of Grubb Properties, led the acquisition efforts on behalf of the joint venture. Steve Heffner, senior vice president with CB Richard Ellis Capital Markets, represented the joint venture in securing new financing for the transaction with Freddie Mac.
Riverwoods is a 174-unit, garden and townhome style apartment community that features visibility and access as well as unique unit designs. The joint venture plans to invest additional capital into the property as part of a repositioning effort including a name change to Sterling Forest Apartments.
“Riverwoods and Glen Lennox mark FCP’s first venture in North Carolina as we continue to expand our investments in the Mid-Atlantic region,” FCP Managing Partner Alex Marshall, tells GlobeSt.com. “Glen Lennox is FCP’s second investment in North Carolina. Both properties are ‘bread and butter’ apartment acquisitions; that is, older products that could use some additional capital investment and that have the ability to improve operations through more focused management.”
Glen Lennox offers 440 one-story apartment homes on approximately 69 acres and is located on one of the largest privately held contiguous tracks of land in Chapel Hill. Just minutes from UNC Chapel Hill, the community is a popular location for graduate students as well as long term residents due to its open green spaces, affordability and easy access to the University as well as to the Research Triangle area. Dean Smith and Blake Oakland of Apartment Realty Advisors represented Grubb Properties on securing the new investment.
“Glen Lennox was a recap of a project that Grubb has owned for 25 years, with FCP purchasing an 80% stake in the property. FCP and Grubb own 100% of Riverwoods in a 90-10 stake, with FCP the majority partner,” Marshall says. “We have been looking in the Raleigh market for the last few years and spent a lot of time understanding its macro fundamentals and apartment market and believe strongly in marketplace. We are now looking for additional investments.”
Erika Morphy contributed to this article.
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