614 Units Included in Two North Carolina Apartment Communities
Federal Capital Partners (FCP) and Grubb Properties Inc.(GPI) today announced a joint venture investment in two apartment communities located in Raleigh and Chapel Hill, NC. The new venture, valued at $42 million, includes Riverwoods apartments located on Six Forks Road in Raleigh and the Glen Lennox apartment community on Hamilton Road in Chapel Hill.
“Riverwoods and Glen Lennox mark FCP’s first venture in North Carolina as we continue to expand our investments in the Mid-Atlantic region,” said FCP Managing Partner, Alex Marshall. Marshall continued, “We are particularly pleased to team up with Grubb Properties, who will be a strong regional partner with us going forward. The FCP / GPI team plans to improve and reposition these properties over the coming months and will continue to look for additional opportunities to make direct investments as well as provide mezzanine debt and preferred equity for recapitalizations and purchases.”
“We are so pleased that Federal Capital Partners has chosen to partner with us and we look forward to expanding this joint venture program to include additional investments,” said Clay Grubb, President of Grubb Properties. GPI will be assuming all property management responsibilities on behalf of the new ownership including continuing its current 25 plus year management history with the Glen Lennox apartment community.
Riverwoods is a 174-unit, garden and townhome style apartment community that features excellent visibility and access as well as unique unit designs. Jason Nettles of Holliday Fenoglio Fowler, L.P. represented the seller, Dilweg Companies of Durham, NC, in this 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. 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.
“We feel this property will benefit from a range of capital improvements as well as the introduction of our new property management team. Our team will be extremely focused on customer service and resident satisfaction, both hallmarks of our Sterling Brand,” remarked Megan Muldowney, Senior Vice President of Multifamily Operations for Grubb Properties. “As a result of these and other changes, we felt a name change was appropriate for the property,” she added.
Glen Lennox is comprised of 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.
“While Riverwoods represents a new acquisition for both parties, Glen Lennox Apartments is a treasured community that we have owned and managed since 1986,” Mr. Grubb added. “We are confident that we have found a strategic partner in FCP that shares our passion about the potential future of this property and its unique history in the Chapel Hill community.” The partnership will continue to participate in ongoing community workshops and meetings to discuss the future of the almost 60 year old property. “We recognize that Clay and his team have been wonderful stewards of this asset throughout their ownership and we hope to bring the same sensitivity to our combined efforts going forward,” remarked Alex Marshall of FCP.
About Federal Capital Partners
Federal Capital Partners (www.fcpdc.com) is a real estate investment company headquartered in Georgetown in Washington, DC. The Managing Partners include Esko Korhonen, Lacy Rice, Tom Carr and Alex Marshall. Since its inception, FCP has acquired more than $2.0 billion of real estate assets and debt across all property types. FCP manages FCP Fund I, L.P., a $240 million co-mingled real estate private equity fund formed to invest in multiple real estate sectors in the Mid-Atlantic region, with a focus on the metro Washington DC area. The Fund is able to provide both debt and equity capital as needed for real estate investments throughout the region.
About Grubb Properties
Grubb Properties, founded in 1963, has over 47 years of experience in real estate investment, management and development throughout the Southeast. Since its inception, Grubb has completed over $1.37 billion in transactions including over $700 million in value-add investments and $350 million in mixed-use development projects. The firm has broad expertise and stewardship of various property types including retail, office, apartments, condominiums and mixed-use properties through both acquisition and development programs. Grubb Properties is a vertically integrated operating platform with capabilities in real estate investment, property management, development, construction, leasing and sales with offices in Charlotte, Raleigh and Lexington North Carolina. For additional information about Grubb Properties visit www.grubbproperties.com