Investment Firm Buys 3,000 North Carolina Apartments In The Middle Of Rising Regional Demand

Financial investment firm Starwood Capital Group bought an 11-property North Carolina apartment portfolio from multifamily designer Electra America in an indication of surging demand throughout the region for leasings in a strong economy.

The purchase extends Starwood’s heavy financial investment in slightly older systems in secondary southeastern markets. Both Charlotte and Raleigh have had outsized task growth and need for leasings in the present financial recovery.

The nearly 3,000-unit bundle is located around Charlotte and Raleigh, NC, and all are Class-B properties averaging 30 years old. That leaves some space for Starwood, based in Greenwich, CT, to update the units and raise leas while still undercutting the rents at more recent, neighboring leasings.

CBRE brokered the deal for Electra and partner Morgan Stanley realty. Electra America is the Florida-based U.S. arm of Electra Property, locateded in Tel Aviv, Israel.

Terms of the offer have not been revealed, however older vintage leasings in those markets have been trading for in between $125,000 and $200,000 per unit.

Electra itself assembled a portfolio of Class B Raleigh and Charlotte homes in 2016 and paid about $110,000 each, for an overall of $365.9 million. It’s uncertain how many residential or commercial properties from that 2016 purchase were sold to Starwood, but regional experts estimate the rate this time around would top $400 million.

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