This Is Arch’s Third Major Garden-Style Portfolio Acquisition in 2021
A partnership between Arch Companies and Drake Real Estate Partners has acquired a three-property portfolio of garden-style multifamily properties in Tuscaloosa, Alabama totaling 649 units. As the Southeast market continues to appreciate, this is the third acquisition of a garden-style portfolio by the Arch-Drake partnership in under five months. This purchase follows an acquisition of 672 garden-style units in Columbia, South Carolina and 486 garden-style units in Birmingham, Alabama earlier in this year which brings the Arch-Drake partnership to approximately 2,000 units. The acquisition was financed by Walker & Dunlop Commercial Property Funding and arranged by Josh Jacobs, First Vice President, Investments, Marcus & Millichap, as well as Brian Savage, Partner & Managing Director, Colliers International.
The portfolio includes three properties south of downtown Tuscaloosa and the University of Alabama in the Southwood and Idlewood neighborhoods: Broadmoor Gardens, Copper Creek and Woodlawn Manor. The three properties all offer convenient access to work and leisure activities in the city via I-59, I-20 and I-359, and are near parks, the DCH Regional Medical Center and employment opportunities, such as Mercedes-Benz US.
“Strategically located near the heart of Tuscaloosa, this portfolio aligns with our expansive Southeastern footprint,” said Jeffrey Simpson, Managing Partner and Co-Founder, Arch Companies. “We are excited by the opportunities presented by assets with high upside potential, particularly those in dynamic cities with diversified live-work-play offerings for residents.”
The three properties include a mix of one-, two-, and three-bedroom units, all which, have benefited from strong occupancy figures. To improve resident experience, Arch will be implementing value-add capital improvements through their vertically integrated Arch Builders division. Additionally, the properties will be operated by Arch’s experienced, hands-on, in-house management team.
“Across our robust Southeast multifamily presence, our strategy is to stabilize and improve assets to deliver investment value and a great resident experience,” said Jared Chassen, Partner and Co-Founder, Arch Companies. “We have strong relationships with our partners and capital providers to help ensure our vertically integrated approach continues to support the breadth of our vision and portfolio.”
“We value our continued collaboration with Arch and their nearly 5,000-unit multifamily portfolio,” said Geoff Smith, Managing Director, Walker & Dunlop. “They have built an impressive reputation through their ability to identify and deliver on value-add opportunities in ascendant markets.”
“Drake continues to seek long-term, programmatic relationships with strategic partners, like Arch, with deep expertise and relationships in their respective property types and markets,” said Moira Concannon, Vice President of Acquisitions, Drake Real Estate Partners. “We value our ongoing partnership with Arch and look forward to targeting and delivering on opportunities in the Southeast multifamily market with them in the future.”
“Working with Arch and Drake continues to be a productive relationship and we expect great success,” said Jacobs. “Their institutional expertise and their proactive vision continue to drive growth that benefits all transaction parties and the regional market.”
About Drake Real Estate Partners
Founded in 2012, Drake Real Estate Partners is a real estate investment and asset management firm based in New York City. Drake seeks to invest in high quality, income-producing real estate assets at a significant discount to replacement cost, and drives value by focusing on repositioning, leasing and improving operations. Drake uses the flexible, long-term nature of its capital to its advantage by seeking out opportunities that have been overlooked by other investors. Drake has completed more than $1.5 billion in transactions to date and has invested across a variety of geographies and property types, including multifamily, industrial, office (including medical office and creative office), self-storage, senior housing, retail and hospitality.
To further impact the local communities in which Drake invests, the firm has partnered with 1% for the Planet, a conservation-focused nonprofit whose mission and values are consistent with those of Drake’s founders. Drake donates 1% of the firm’s annual revenues to nonprofit conservation-related initiatives in the markets in which it invests.
About Arch Companies
Arch Companies is a vertically integrated real estate owner, operator, and developer with an active investment portfolio of more than 3.4 million square feet across the United States. Founded in 2017 by Jeffrey Simpson and Jared Chassen, Arch specializes in real estate investment, development, and management with a concentration on primary and secondary markets. The company has three investment verticals, value add multi-family, ground up development and white knight capital. Arch differentiates itself by providing hands-on real estate investment management, creative deal structuring, and transparent communication with partners. Arch’s vertically integrated platform allows for complete control and oversight of the business plan throughout the life cycle of the investment.
About Walker & Dunlop
Walker & Dunlop (NYSE: WD) is the largest provider of capital to the multifamily industry in the United States and the fourth largest lender on all commercial real estate including industrial, office, retail, and hospitality. Walker & Dunlop enables real estate owners and operators to bring their visions of communities — where Americans live, work, shop and play — to life. The power of our people, premier brand, and industry-leading technology make us more insightful and valuable to our clients, providing an unmatched experience every step of the way. With over 1,000 employees across every major U.S. market, Walker & Dunlop has consistently been named one of Fortune’s Great Places to Work® and is committed to making the commercial real estate industry more inclusive and diverse while creating meaningful social, environmental, and economic change in our communities.
About Marcus & Millichap (NYSE: MMI)
With over 2,000 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed 8,954 transactions in 2020 with a value of approximately $43 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com.
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 67 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to real estate occupiers, owners and investors. For more than 25 years, our experienced leadership with significant insider ownership has delivered compound annual investment returns of almost 20% for shareholders. With annualized revenues of $3.0 billion ($3.3 billion including affiliates) and $40 billion of assets under management, we maximize the potential of property and accelerate the success of our clients and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.