DURHAM, NC – Starwood Real Estate Income Trust, a non-traded REIT managed by Starwood Capital Group, announced the acquisition of Exchange on Erwin, a Class A, high-quality mixed use property totaling 265 multifamily units and 96,949 RSF of commercial space in Durham, NC. The property was bought through an off-market transaction for approximately $111 million, excluding closing costs, from an affiliate of Ram Realty Advisors (“Ram”). The multifamily property was recently completed in 2018 and the commercial property, consisting primarily of medical office space, was completed in 2007.
The property benefits from its prime location directly across the street from Duke University, which is the largest employer in the Raleigh-Durham market, with nearly 40,000 employees. This provides its tenants with exceptional access to the University Health System buildings, including its world-renowned hospital. A substantial part of the multifamily units are leased to Duke University graduate students and the medical office space is 100% leased to various Duke University medical tenants. The Exchange on Erwin multifamily units were 99% occupied and the commercial space was 95% leased as of the acquisition date, resulting in overall occupancy of 98%.
In addition to its location directly adjacent to Duke University, Exchange on Erwin is near world-class medical facilities, within a strong biotech and innovation hub, and just 15 minutes from Research Triangle Park, which has 22.5 million sq ft. of office space and is home to 55,000 employees.
“We like Exchange on Erwin because is it uniquely positioned to benefit from a significant demand driver in Duke University that has been in-place for more than 125 years and continues to expand and strengthen,” said Mark Keatley, Managing Director of Acquisitions, Starwood Capital Group. “We believe this asset will allow SREIT to achieve strong, risk-adjusted cash yields from reliable and sustainable tenancy tied to the educational institution and healthcare industries.”
“Exchange on Erwin is another example of SREIT acquiring high-quality real estate in its targeted high-growth markets, which are benefitting from strong population and job growth,” said John McCarthy, CEO and President of SREIT. “SREIT focuses on markets with strong growth dynamics because they drive occupancies, rents, and values upward.”
Exchange on Erwin was originally bought by Ram in November 2015 on behalf of Ram Realty Partners III LP. Immediately following the acquisition, Ram designed, permitted and developed the 265 multifamily units as part of its strategy to make a vibrant mixed-use project. “We bought Exchange on Erwin largely as a result of our conviction about the quality of the location and the opportunity to improve the asset,” said Casey Cummings, CEO of Ram. “We are pleased that an institution like Starwood Capital Group believes as strongly in the property as we did when we launched our value-add strategy.”
“The sale of a high-quality property is always bittersweet but we are confident that SREIT will continue to be a excellent steward of the asset.”

Powered by WPeMatico

NANUET, NY – Mill Creek Residential, a leading multifamily investor, developer, and operator specializing in premier apartment communities across the U.S., announced the acquisition of Alister Nanuet, which marks the company’s seventh acquisition of the previous 12 months. The newly bought communities total more than 1,600 apartment homes and a combined capitalization in excess of $500 million.
“The transaction rounds out a busy year of acquisitions for Mill Creek Residential, in which we have bought seven apartment communities with strategic joint venture partners,” said Wesley Dickerson, senior managing director of acquisitions for Mill Creek Residential. “These acquisitions are located in target markets that include South Florida, the Mid-Atlantic and the Pacific Northwest. We continue to focus our investment efforts on value-add opportunities in locations that we view as growth markets because of their strong population and employment base.”
Situated at 100 Avalon Gardens Drive surrounded by a lush backdrop, Alister Nanuet is a garden-style apartment community featuring 504 apartment homes with spacious layouts. The community offers one-, two- and three-bedroom homes with an average square footage of 1,208. The Hudson Valley-based community sits within a small drive of several key thoroughfares, public transit options, convenience retailers and key employment centers.
Mill Creek Residential’s other recent acquisitions include two communities in northern Virginia, two in Florida and two in Washington. Mill Creek bought the two communities in the Seattle suburb of Everett, Wash., earlier this year and rebranded them as one standalone community, Alister Parx.
“While Mill Creek has built its reputation as a top-tier developer over the past several years, we’ve also made a concerted effort to augment our portfolio with strategic acquisitions,” Dickerson said. “These communities complement our existing portfolio in that they offer a comfortable, top-of-market living experience in some of the nation’s most compelling investment markets.”

Powered by WPeMatico

WAUKEE, IA – Four Mile Capital, a privately-held real estate investment firm based in Louisville, CO, has bought The Bricks Waukee East, a 216 unit multifamily community in Waukee, IA, a suburb of Des Moines, in an off-market transaction. Bricks, completed in 2017 and sitting on 9.2 acres, consists of one- and two-bedroom apartment units and has a competitive amenity package, including a pool and fitness center. BH Management ( BH ), based in Des Moines, IA, has been awarded the management contract, their second with FMC.
The transaction closed December 5, 2019, for $25,000,000, or $115,741 per unit and $155 per square foot. As part of their acquisition, new ownership placed a new non-recourse 65% LTV fixed-rate mortgage at 3.625% from Luana Savings Bank, based in Iowa.
Bricks is located in the rapidly growing suburb of Waukee, which is exceptionally located in relation to the largest employers, retail centers, and interstate highways in the affluent Dallas County and West Des Moines submarkets. The Property is 20 minutes from downtown Des Moines, 25 minutes to DSM International Airport, 10 minutes to the Jordan Creek Town Center mall, the premier retail destination in the metro, and 5 minutes from a newly approved 40 acre, $80M mixed-use entertainment district opening in 2021.
After purchasing the nearby Aspire Townhomes in West Des Moines in December 2018, FMC now owns about 450 units in the MSA and is looking to add more. The Des Moines market continues to demonstrate very strong investment fundamentals despite a wave of new supply, with strong job and population growth that extends out to the suburbs, said Eric Mallon, one of FMC s founding principals. 11,000 new residents joined the metro annually through the 1Q2019, and its 1.7% growth rate puts Des Moines ahead of most other Midwest metros. Waukee s population has exploded nearly 300% since 2000 and was recently named the 9th fastest growing suburb in the country. It also has the 3rd ranked school district in Des Moines (and 10th in the state), all of which are key investment indicators for us, continued Mallon.
Given its new construction, there is very small deferred maintenance or expected capital investment at the Property, so FMC will instead focus on improving operations through the implementation of more sophisticated management and marketing strategies, utilizing their institutional-quality asset management platform to control operational expenses and make strategic decisions for the asset. At this point in the cycle, we are thrilled to be able to buy newer construction assets, at a basis below replacement cost, and with returns approaching those of traditional value add executions, said Andrew Jumbeck, VP of Acquisitions for Four Mile.
Four Mile Capital continues to pursue additional value-add investment opportunities in secondary and tertiary markets throughout the U.S, with a specific focus on Colorado, Virginia, the Carolinas, Iowa, and Wisconsin. They use an opportunistic strategy in acquiring off-market properties that fall below the radar of its institutional peers, targeting investments with a total capitalization between $10MM and $100MM, and between $5MM and $35MM of equity.

Powered by WPeMatico