Arch Companies acquires four-asset, 1,125-unit multi-family portfolio in Winston-Salem, NC And Spartanburg, SC for $61 million

Arch’s New Carolinas Portfolio Adds to the Firm’s Expanding Southeast Footprint

New York – December 5, 2019 – Arch Companies is pleased to announce the $61 million acquisition of 1,125 multifamily units across four properties in the increasingly popular Southeast markets of Winston-Salem, North Carolina and Spartanburg, South Carolina. Arch Advisors, a subsidiary of Arch Companies, secured $61.5 million of financing from Walker Dunlop and will reinvigorate the currently distressed properties through an extensive renovation and rebranding plan. The new Carolinas portfolio will be professionally managed by Ore Living and Wellington Advisors.

This purchase marks Arch’s third acquisition in the Southeast U.S. over the last two months, bringing its total recent acquisitions to approximately 2,000 units, including its two recent acquisitions of 868 units in Jacksonville, Florida. Overall, Arch has now acquired value-add multifamily properties in six states: Alabama, California, Connecticut, Florida, North Carolina and South Carolina.

The portfolio includes four properties generally built during the 1970s and 1980s: Chesterfield, Silas Creek and Twin City, all in Winston-Salem, and Whispering Pines in Spartanburg. All four boast convenient locations near local transportation and services, and Arch plans to carry out various upgrades throughout the interiors and exteriors of the properties to help maximize their potential for current residents, as well as attract additional renters, capitalizing on the demand for similar residential offerings in the area.

“The properties, aided by Arch Companies’ growing locational critical mass, will benefit from our proven value-add strategy,” said Jared Chassen, Partner at Arch Companies. “There is increasing demand for housing in the region and the transaction represents Arch’s plan to invest in the neighborhoods and surrounding greater Winston-Salem and Spartanburg areas.”

Arch is actively seeking to identify additional value-add investment opportunities in its expanding Southeast footprint.

“The Southeast market is increasingly active and represents tremendous upside potential,” said Jeffrey Simpson, Managing Partner at Arch Companies. “Both Winston-Salem and Spartanburg have positive growth and economic profiles, which played a key part in developing our investment thesis.”

About Walker & Dunlop

Walker & Dunlop (NYSE: WD), headquartered in Bethesda, Maryland, is one of the largest commercial real estate finance companies in the United States. The company provides a comprehensive range of capital solutions for all commercial real estate asset classes, as well as investment sales brokerage services to owners of multifamily properties. Walker & Dunlop is included on the S&P SmallCap 600 Index and was ranked as one of FORTUNE Magazine’s Fastest Growing Companies in 2014, 2017, and 2018. Walker & Dunlop’s 800+ professionals in 32 offices across the nation have an unyielding commitment to client satisfaction.

About Arch Companies

Arch Companies specializes in real estate investment, development, construction and asset management across the United States with a concentration on primary and secondary markets. Jeffrey Simpson and Jared Chassen founded Arch Companies on the premise that investment in real estate should be driven by sound market fundamentals, a flexible time horizon and strong alignment of interest between investors and managers. With more than 35 years of experience, Arch Companies has a strong track record of driving investment results. Arch Companies differentiates itself by providing hands-on real estate investment management, creative deal structuring, and transparent communication with partners.

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