Author: ipgocorp

NEW YORK, NY – S&P Dow Jones Indices released the latest results for the S&P CoreLogic Case-Shiller Indices, the leading measure of U.S. home prices. Data released for April 2017 shows that home prices continued their rise across the country over the last 12 months. 

YEAR-OVER-YEAR

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 5.5% annual gain in April, down from 5.6% last month. The 10-City Composite annual increase came in at 4.9%, down from 5.2% the previous month. The 20-City Composite posted a 5.7% year-over-year gain, down from 5.9% in March.

Seattle, Portland, and Dallas reported the highest year-over-year gains among the 20 cities. In April, Seattle led the way with a 12.9% year-over-year price increase, followed by Portland with 9.3%, and Dallas with an 8.4% increase.  Seven cities reported greater price increases in the year ending April 2017 versus the year ending March 2017. 

MONTH-OVER-MONTH

Before seasonal adjustment, the National Index posted a month-over-month gain of 0.9% in April. The 10-City Composite posted a 0.8% increase and the 20-City Composite reported a 0.9% increase in April. After seasonal adjustment, the National Index recorded a 0.2% month-over-month increase. The 10-City Composite posted a 0.2% month-over-month increase. The 20-City Composite posted a 0.3% month-over-month increase. Eighteen of 20 cities reported increases in April before seasonal adjustment; after seasonal adjustment, 13 cities saw prices rise.

ANALYSIS

“As home prices continue rising faster than inflation, two questions are being asked: why? And, could this be a bubble?” says David M. Blitzer Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “Since demand is exceeding supply and financing is available, there is nothing right now to keep prices from going up. The increase in real, or inflation-adjusted, home prices in the last three years shows that demand is rising. At the same time, the supply of homes for sale has barely kept pace with demand and the inventory of new or existing homes for sale shrunk down to only a four- month supply. Adding to price pressures, mortgage rates remain close to 4% and affordability is not a significant issue.

“The question is not if home prices can climb without any limit; they can’t. Rather, will home price gains gently slow or will they crash and take the economy down with them? For the moment, conditions appear favorable for avoiding a crash. Housing starts are trending higher and rising prices may encourage some homeowners to sell. Moreover, mortgage default rates are low and household debt levels are manageable. Total mortgage debt outstanding is $14.4 trillion, about $400 billion below the record set in 2008. Any increase in mortgage interest rates would dampen demand. Household finances should be able to weather a fairly large price drop.”

More than 27 years of history for these data series is available, and can be accessed in full by going to www.homeprice.spdji.com. Additional content on the housing market can also be found on S&P Dow Jones Indices’ housing blog: www.housingviews.com.

SEATTLE, WA – Security Properties and Cigna Investment Management purchased Soma Apartments, a 74-unit multifamily property located in Bellevue, WA for $28,000,000. The 2011 built asset also includes two street front retail spaces. This was Security Properties’ third joint venture with Cigna Investment Management; SP now owns a total of 19 assets in the Seattle marketplace.

The property is located on Main Street, proximate to Old Bellevue and at the doorstep of Bellevue’s growing Downtown Core. Soma offers residents convenient walkability to jobs, destination shopping, entertainment, restaurants and nightlife. The desirable urban location is paired with the asset’s boutique size and serene living experience, a unique attribute in a submarket that is experiencing increased density.  

The business plan is a moderate value-add. While the exterior asset offers lasting character in Downtown Bellevue, the 2011-vintage interior unit specifications provide an opportunity for functional and cosmetic upgrades. The business plan contemplates upgraded appliances, renovated back-splashes, new flooring and lighting in the kitchen-area and comparable upgraded finishes in bathroom areas.

According to Tad Johnson, Investment Manager at Security Properties, the acquisition was made because, “the core location, type-1 construction and boutique size make Soma a nearly irreplaceable asset. As Downtown Bellevue’s already expansive employment base continues to swell, Soma is uniquely positioned to capitalize on the urban core’s growth by offering residents walkability to jobs and amenities. Upon execution of our business plan, residents will benefit from an upgraded living experience.”

The property will be managed by Security Properties-affiliate Madrona Ridge Residential.

SAN ANTONIO, TX – National Asset Services (NAS), one of the Country’s leading commercial real estate companies, has successfully delivered a buyer for a multifamily property in San Antonio, Texas, netting a selling price of over 32% greater than the average offer.  The company also delivered an 18% cumulative return for the property’s 24 tenants-in-common (TIC) investors, during the property’s hold period.

An extensive eight-month negotiating period with multiple potential buyers resulted in the property’s recent close of a sales transaction that was 32% greater than the average offer. 

Achievement of the positive results occurred, despite significant hailstorm damage to the property in April 2016.  NAS executives acted quickly to mitigate the negative impact to the property’s occupancy immediately after the storm.   Acting as project manager, NAS management worked with the property’s insurance adjusters, lender, general contractor and various third parties to restore the property, as fast as possible, to good condition.

Leasing strategies, designed to maintain occupancy, included improvements to vacant units including new appliances, new flooring and wall coverings along with strategic economic incentives.

NAS worked with Berkadia Real Estate Advisors, Austin, Texas to facilitate the property’s recent sale.

“The Crescent is a good example of our ability to proactively manage towards the long term goal of a positive return for our clients, while reacting quickly and prudently to an event that can potentially impact property operations,” commented Karen E. Kennedy, President and Founder of National Asset Services.  “We are pleased that our performance at The Crescent resulted in the very best possible outcome for our clients.”

Originally constructed in 1993, the 24-member TIC group, in which one TIC member position was comprised of 68 other investors, purchased the luxury-apartment-home community in 2007.  Situated on 14.6 acres, the 303,422 square-foot complex consists of 306 spaciously designed, luxury apartment homes.  The apartment community is located in the prestigious Alamo Heights area of San Antonio, adjacent to The Quarry Golf Club, an 18-hole championship golf course.

ORLANDO, FL – Florida’s housing market reported more closed sales, higher median prices, more new listings and more pending sales in May, according to the latest housing data released by Florida Realtors. Sales of single-family homes statewide totaled 27,850 last month, up 7.6 percent compared to May 2016.

“Buyer demand continues to fuel Florida’s housing market this month,” said 2017 Florida Realtors President Maria Wells, broker-owner with Lifestyle Realty Group in Stuart. “As for-sale inventory continues to be tight, prospective buyers are responding by being prepared, pre-qualified and ready to make an offer when they find the right home. Realtors across the state report that many newly listed homes are selling quickly. In May, sellers of existing single-family homes received 96.4 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.7 percent – a signal that the listed price is extremely close to market value.

“In this competitive and complex market, it is vital for consumers to work with a Realtor who will provide them expert guidance in the homebuying or selling process.”

The statewide median sales price for single-family existing homes last month was $239,000, up 7.7 percent from the previous year, according to data from Florida Realtors research department in partnership with local Realtor boards/associations. The statewide median price for townhouse-condo properties in May was $178,000, up 8.1 percent over the year-ago figure. May was the 66th consecutive month that statewide median prices for both sectors rose year-over-year. The median is the midpoint; half the homes sold for more, half for less.

According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in April 2017 was $246,100, up 6.1 percent from the previous year; the national median existing condo price was $234,600. In California, the statewide median sales price for single-family existing homes in April was $536,750; in Massachusetts, it was $362,500; in Maryland, it was $285,023; and in New York, it was $235,000.

Looking at Florida’s townhouse-condo market, statewide closed sales totaled 11,538 last month, up 8 percent compared to May 2016. Closed sales data reflected fewer short sales and last month: Short sales for townhouse-condo properties declined 44.8 percent while short sales for single-family homes dropped 30.8 percent. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

“Closed sales of existing homes in the Sunshine State not only rebounded from a relatively flat April, they positively surged to record highs in May of 2017,” said Florida Realtors® Chief Economist Dr. Brad O’Connor. “To be more specific, May’s sale totals of 27,850 existing single family homes and 11,538 existing condos and townhomes were the most ever recorded (by Florida Realtors) for a single month in either property type category. In both cases, these totals were also markedly higher than the very strong number of sales racked up in May of 2016.”

Inventory remained tight in May with a 4-months’ supply for single-family homes and a 6-months’ supply for townhouse-condo properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.01 percent in May 2017; it averaged 3.60 percent during the same month a year earlier.

To see the full statewide housing activity reports, go to Florida Realtors Media Center.

DALLAS, TX – NAPA Ventures, an Austin, Texas based multifamily and commercial real estate investment company co-founded by Shravan Parsi and Glenn Gonzales, announced the acquisition of The Falls Apartments.

The Falls is the latest investment made by the real estate investment firm. The property is composed of 208-units, a leasing office, and multiple amenities located conveniently off the Lyndon B. Johnson Freeway.

The Falls Apartments is the first property that NAPA has closed on in 2017 in Dallas and the third asset the acquisitions company has closed on in the past three months.

“The closing of this asset increases our footprint in Dallas which has been a strategic move since the beginning,” said Shravan Parsi, Co-CEO of NAPA. “We now have 10 total assets in DFW MSA under ownership.”

NAPA’s business plan is to renovate the exterior and interior of its properties to increase profitability and provide a great living experience for its residents. These updates include a makeover of landscaping, pool decks, parking lots, exterior paint and upgrading both the leasing office and business center. Interior unit renovations include: upgrades to countertops, cabinets, floors, and trendsetting black appliances.

“We plan to breathe some life into this property.” Parsi said, “The Falls and its immediate submarket (Mesquite, TX) is in the process of extreme growth and NAPA wants to be a part of that.”

With the closing of this property, NAPA is set to close two properties in Corpus Christi, TX in July 2017.

NAPA has a strong pipeline of Multifamily & CRE deals with planned off-market acquisitions in all the major markets of Texas.

DALLAS, TX – Twenty years ago, the South Side area was born when the historic Sears warehouse in Dallas’ Cedars neighborhood was acquired and transformed into retail and loft apartments. Since that acquisition, historic buildings in the neighborhood continue to be repurposed, while at the same time developers are constructing new residential, retail, restaurants and entertainment venues as part of the wider GrowSouth revitalization efforts on the south side of downtown Dallas.

Today, the investment paid off for one developer. JPI, a leader in the development of Class A multi-family housing, sold South Side Flats by Jefferson to Waterton, a U.S. real estate investor and operator. Matthews Southwest, the catalyst developer for the South Side neighborhood, partnered with JPI on the community, which is the first newly constructed market-rate multi-family community built in the South Side area of the Cedars.

“South Side Flats is attractive to residents and investors alike, offering extensive modern amenities and services while maintaining an authentic neighborhood feel,” said Matt Brendel, senior vice president and development partner at JPI. “The performance of the community exceeded our expectations, due in part to the growth of the dynamic neighborhood and the community’s thoughtful urban design and higher level of service.”

CBRE brokered the sale of the community for JPI and Matthews Southwest. South Side Flats was developed and built by JPI in 2016 and sits on approximately 4 acres. The community’s best-in-class amenities include a rooftop lounge, pool with outdoor kitchen, fitness center, large clubhouse, private yards, downtown views, stained concrete floors, and smart home technology in select units.

“We are extremely pleased with the continued success of South Side Flats and the way the community contributes to the live/work/play vibrancy of the South Side area,” added Kristian Teleki, senior vice president at Matthews Southwest.  “Recently, other exciting additions, such as Full Circle Tavern’s expansion, La Taverna, the Alamo Draft House, David Weekly’s single family home development and Four Corners Brewery have joined South Side Flats to promote the lifestyle of the neighborhood we have worked many years to develop.”

Walkable points of interest also include the Cedars DART Light Rail Station, Omni Convention Center Hotel, Gilleys, Alamo Drafthouse, and the NYLO Hotel.

CHARLESTON, SC – The Passage, a new luxury residential development in Charleston offers quality lifestyle opportunities in the sought-after neighborhood of Summerville. The 240-unit apartment community provides high-end amenities and is near one of Charleston’s fastest-growing corridors.

The Passage is developed and owned by Woodfield Investments and is managed by CF Real Estate Services.

“This community provides the lifestyle that the professionals who have come to work in this growth market expect to live,” said Brian Schick, Development Partner, Woodfield Investments. “The businesses that are operating in Summerville are attracting a professional who is looking for a different level of luxury. We have put careful thought into creating an area that fosters a fulfilling daily life experience.”

The Passage presents residents an amenity package that includes a dog park, horseshoe pit and bocce ball, open-air cabanas, an in-pool sun shelf in a saltwater pool and fiber optic internet. Wellness benefits include yoga and spin studios, as well as instructor-led classes. The layout and square footage of the apartment homes in The Passage are significantly greater than average, and include the only studio floorplan in the submarket.

The community has begun pre-leasing activities, and officially opened June 8.

Woodfield Investments is a developer of Class A multifamily and mixed-use assets located throughout the Mid-Atlantic and Southeastern portions of the US. Woodfield currently has 2,621 units in the process of lease-up and stabilization, with another 3,000 under construction and an additional 2,500 units in the development pipeline.

With headquarters in Atlanta, GA, CF Real Estate Services is a vertically integrated multifamily real estate firm. Known as an industry leader, CF’s menu of services includes property management, asset management, and consulting.

TAMPA, FL – The RADCO Companies (RADCO), one of the nation’s leading opportunistic real estate developers, completed its third acquisition of 2017 with the closing of Cordova Apartment Homes in Tampa, Florida. This is RADCO’s 69th acquisition since 2011, its seventh community in Florida, and its sixth in Tampa.

The 536-unit, Class B property has been renamed Sunstone Palms.  Sunstone Palms will be proudly managed by RADCO Residential, the Company’s proprietary management platform.  

RADCO plans to spend upwards of $7.7 million, or approximately $14,500 a unit, on capital improvements to modernize the community and reset its economic clock. RADCO financed the acquisition using a $36.7 million Prudential loan and around $15.4 million in private capital. Since August 2011, the Company has raised more than $500 million in private capital to fund its acquisitions, making it one of the largest private capital companies of its type in the nation.

Sunstone Palms is favorably located in Tampa Bay on the west coast of Florida. The property is just mere minutes away from the University of South Florida and its burgeoning medical center, as well as the metro area’s major employment districts.  The medical district of the University of South Florida includes prestigious institutions such as the H. Lee Moffit Cancer Center and Research Institution, Florida Hospital and the James A. Haley Veterans’ Hospital.  Tampa boasts a diverse and expanding business environment, thriving economy, and vibrant job market, as well as a multilingual and highly-trained workforce supported by notable educational institutions.

Built in 1975, Sunstone Palms is situated on 19 acres and consists of 67 two- and three-story buildings. Averaging 875 square feet, the garden-style apartments offer a range of one, two-, and three-bedroom floorplans. The community amenities include a state-of-the-art fitness center, two pools, a playground, picnic and grilling areas, on-site laundry facilities, a clubhouse, a business center, and a dog park.

“RADCO has an established presence and excellent track record in the Tampa and Florida area markets,” said Norman Radow, founder and Chief Executive Officer of The RADCO Companies. “Sunstone Palms is a great addition to our portfolio. We intend to make a significant positive impact on the community and surrounding neighborhood. The community has all the right bones, yet it still has a tremendous amount of unlocked potential. We cannot wait to get started on building better living and delivering service-oriented management for our residents.”

RADCO plans to transform the look and feel of the property through significant building renovations, unit interior upgrades, and enhancements to common area amenities. Specifically, RADCO’s capital improvements program will concentrate on interior renovations that include updated cabinetry, upgraded appliance packages, new flooring, modern lighting, hard-surface counter tops, and designer paint. Amenity improvements will feature a complete clubhouse remodel and addition of a new fire pit and grilling area.  RADCO also plans to initiate exterior LED lighting upgrades, along with thoughtful landscaping, hardscape additions, roof replacements, asphalt repairs, HVAC and water heater replacements, updated signage, and a community-wide new and modern paint scheme, all of which will drastically improve the property.

NEW YORK, NY – At a seasonally adjusted annual rate of $651.2 billion, new construction starts in May increased a slight 1% from April, according to Dodge Data & Analytics. Public works construction bounced back 30% from its subdued April amount, helped by the May start of four large pipeline projects totaling a combined $3.0 billion.

This enabled the nonbuilding construction sector (which also includes electric utilities and gas plants) to register a 23% gain in May, offsetting modest 4% declines for both nonresidential building and housing. Through the first five months of 2017, total construction starts on an unadjusted basis were $274.3 billion, down 5% from the same period a year ago.  If the volatile manufacturing plant and electric utility/gas plant categories are excluded, total construction starts during the first five months of 2017 would be up 2% relative to last year.

The May statistics produced a reading of 138 for the Dodge Index (2000=100), slightly higher than the 137 reported for April.  During this year’s first quarter, the Dodge Index averaged 152.  “While May revealed slight improvement over April, the pace of expansion so far this spring has generally slowed following the elevated activity in the first quarter,” stated Robert A. Murray, chief economist for Dodge Data & Analytics.

“This is consistent with the up-and-down behavior that’s often been present in the current expansion, and a continuation of this pattern means that renewed strengthening can be expected in the months ahead,” Murray indicated.  “On the plus side, long-term interest rates remain quite low, with the 10-year Treasury bill rate easing back to 2.2% even as the Federal Reserve raised the federal funds rate another quarter point last week. Numerous state and local bond measures passed in recent years are providing near term support for public works and institutional building.  The expected benefits of a new federal infrastructure program, assuming one gets passed during the second half of 2017, would affect construction activity more in 2018.  And, while vacancy rates for commercial building and multifamily housing are beginning to rise, the increases witnessed so far have been generally small.”

Nonbuilding construction in May was $146.9 billion (annual rate), up 23%.  The public works categories as a group climbed 30%, rebounding from a 48% decline in April, as the “miscellaneous” public works category (which includes pipelines) soared 166%.  The largest pipeline project entered as a construction start in May was the $1.5 billion Revolution Pipeline expansion in western Pennsylvania, which includes a 100-mile natural gas pipeline gathering system that will feed into a new cryogenic gas processing plant.  Also entered as a May start were the $690 million Gulf South Coastal Bend Header project in Texas that will deliver natural gas to a liquefaction terminal in Freeport, the $500 million Atlantic Bridge natural gas pipeline expansion in the Northeast (New York, Connecticut, Massachusetts, Maine), and the $300 million Cameron Access natural gas pipeline expansion in Louisiana.  Through the first five months of 2017, the dollar amount of new pipeline construction starts totaled $13.8 billion, already topping the full year 2016 amount of $11.6 billion.  Highway and bridge construction in May grew 5%, helped by a $192 million highway project in San Antonio TX and a $125 million bridge improvement project in the Macon GA area.  The top five states in terms of the dollar amount of new highway and bridge construction starts in May were Pennsylvania, Texas, California, Georgia, and Florida.  The environmental public works categories retreated in May, with river/harbor development down 5%, water supply construction down 9%, and sewer construction down 11%.  The electric utility/gas plant category dropped 3% in May after its 71% hike in April, with the largest May projects being a $500 million natural gas-fired power plant in Pennsylvania, a $259 million transmission line in California, and a $240 million wind power facility in Texas.

Nonresidential building, at $219.3 billion (annual rate), slipped 4% in May.  The commercial categories as a group fell 10%, with office construction dropping 40% following gains of 41% in March and 23% in April.  The two largest office projects entered as May starts were the $300 million American Airlines Trinity Campus in Fort Worth TX and the $166 million General Electric Global Headquarters Building in Boston MA.  The other commercial categories showed growth in May.  Warehouse construction climbed 17%, lifted by the start of a $160 million Amazon fulfillment center in the Houston TX area and an $84 million Fed Ex distribution center in the Worcester MA area.  Store construction advanced 16% with the help of a $200 million shopping center shell in Norwalk CT.  Hotel construction increased 11%, reflecting the start of a $118 million Hilton hotel in Myrtle Beach SC and a $116 million hotel in Monticello NY.  Also contributing was the commercial garage category, which rose 7% in May.  Manufacturing plant construction jumped 22% in May, lifted by the start of a $975 million chemical plant expansion in Louisiana, a $385 million polyethylene plant in Texas, and a $120 million research lab upgrade in Colorado.

The institutional side of the nonresidential building market retreated 4% in May.  Education facilities, the largest nonresidential building category by dollar volume, dropped 21% after registering a 12% gain in April.  Even with the decline, there were several noteworthy educational facility projects that reached groundbreaking in May, including a $100 million science and engineering center at Union College in Schenectady NY, a $93 million engineering building at the University of Rhode Island in Kingston RI, a $76 million dentistry education facility at Texas A&M University in Dallas TX, and a $75 million high school in the Raleigh NC area.  Declines were also reported for religious buildings, down 10%; and the amusement category, down 36%; although the latter did include the start of the $127 million Buddy Holly Hall of Performing Arts and Sciences in Lubbock TX.  On the positive side, healthcare facilities climbed 38% in May with the help of five projects valued at $100 million or more, led by the $442 million Marcus Tower at Piedmont Hospital in Atlanta GA and a $265 million University of Colorado hospital in the Denver CO area.  The public buildings category advanced 51% from a lackluster April, reflecting the start of $125 million detention facility in Phoenix AZ, while the transportation terminal category posted a 23% gain in May.

Residential building was $284.9 billion (annual rate) in May, down 4%.  Multifamily housing retreated 10% following increases over the previous two months that saw activity rise 20%.  There were seven multifamily projects valued at $100 million or more that reached groundbreaking in May, led by a $450 million multifamily high-rise in lower Manhattan NY, the $200 million multifamily portion of a $240 million multifamily/hotel mixed-use high-rise in Chicago IL, and a $200 million multifamily high-rise in Boston MA.  In May, the top five metropolitan areas in terms of the dollar amount of multifamily starts were the following – New York NY, Los Angeles CA, Philadelphia PA, Chicago IL, and Boston MA.  Through the first five months of 2017, the top five metropolitan areas were the following – New York NY, Los Angeles CA, Chicago IL, Washington DC, and San Francisco CA.  The New York NY share of the national multifamily total so far in 2017 is 18%, up slightly from the 17% share reported for full year 2016, although down from the 25% share reported for full year 2015.  Single family housing settled back 2% in May, with its upward track pausing for the third month in a row after showing steady growth during the fourth quarter of 2016 and the first two months of 2017.  By major region, single family housing in May revealed this performance – the West, down 7%; the Midwest, down 5%; the South Atlantic, up 1%; the South Central, up 2%; and the Northeast, up 4%.  One plus for single family housing going forward is the recent retreat in the cost of financing, with the 30-year fixed mortgage rate slipping to 3.9% in early June, after reaching 4.3% in late 2016.

The 5% decline for total construction starts on an unadjusted basis during the first five months of 2017 was due to a varied pattern by major sector.  Nonbuilding construction fell 25% year-to-date, with electric utilities/gas plants down 67% while public works construction was down just 3%.  Nonresidential building grew 5% year-to-date, with institutional building up 17%, commercial building down 5%, and manufacturing building down 9%.  Residential building year-to-date was flat, with single family housing up 8% while multifamily housing decreased 17%.  By geography, total construction starts in the January-May period of 2017 showed this behavior – the Midwest, down 18%; the South Central, down 14%; the Northeast, down 3%; the West, unchanged; and the South Atlantic, up 8%.

Additional perspective comes from looking at twelve-month moving totals, in this case the twelve months ending May 2017 versus the twelve months ending May 2016.  On this basis, total construction starts were up 3%.  By major sector, nonbuilding construction fell 12%, with electric utilities/gas plants down 41% while public works slipped 2%.  Nonresidential building increased 14%, with manufacturing building up 20%, institutional building up 16%, and commercial building up 11%.  Residential building grew 3%, with single family housing up 7% while multifamily housing fell 6%.

RALEIGH, NC – Electra America, one of the fastest-growing multifamily owner-operators in the Southeastern U.S., has acquired a 300-unit apartment community in Raleigh, NC. Completed in 2015, the asset, currently known as The Flats on 401, will be rebranded as Level at 401, and enhanced with a variety of new features and amenities catering to Raleigh renters.

With this acquisition, Electra America now owns five garden-style multifamily communities in the Raleigh area, totaling over 1,500 units. This is the company’s second North Carolina acquisition this year – it recently acquired a property in Charlotte. Nationally, Robbins Electra’s portfolio includes more than 23,000 apartment units totaling over $2.5 billion in value.

HFF marketed the property for the sellers, a local partnership. The HFF investment sales team was led by managing directors Jeff Glenn and Justin Good, and director Allan Lynch. Through their skills, the transaction was privately negotiated and closed in a transaction beneficial to both buyer and seller.

“Apartment demand in Raleigh is strong thanks to job and population growth,” said Joe Lubeck, CEO of Electra America. “Our pet-friendly, reasonably priced apartment communities cater to working professionals – police officers, nurses, and office workers. By modernizing these properties, and providing outstanding customer service, I believe we are serving a niche in the market where demand definitely outstrips supply.”   

Located at 5721 Goodstone Drive, Level at 401 includes studio, one- and two-bedroom apartments in three separate four-story buildings. Apartments feature 9-foot ceilings, balconies, and a washer and dryer in each unit. The pet-friendly community offers resort-style amenities including a swimming pool, clubhouse, fitness center, professional area, spin room, outdoor fireplace and cabana area, and secluded courtyard gardens.  

Electra America will carry out a $1.5 million upgrade to apartment units and common areas, including installing granite countertops in each unit, adding plank flooring in common areas, and executing a remodel of the clubhouse, fitness center and pool deck area.

Electra America is national multifamily owner-operator specializing in multifamily acquisition, repositioning and property management.  It owns and operates properties in Georgia, Florida, Maryland, North Carolina, Texas and Virginia.