This Is Arch’s Second Garden-Style Portfolio Acquisition in 2021
A partnership between Arch Companies and Drake Real Estate Partners has acquired a four-property portfolio of garden-style multifamily properties in Columbia, South Carolina totaling 672 units. The Southeast market is extremely attractive, and the Arch-Drake partnership is making a point to capitalize. This purchase follows an acquisition of 486 garden-style units in Birmingham, Alabama earlier in the year and precedes another portfolio in the pipeline. The acquisition was financed by Walker & Dunlop.
The portfolio includes three properties southeast of downtown Columbia in the Hazelwood Acres neighborhood—the 240-unit Austin Woods at 7648 Garners Ferry Road, 200-unit Harbour Landing at 7625 Garners Ferry Road and 120-unit Mallard Pointe at 1101 Hallbrook Drive—and one property northeast of downtown in the Ravenwood neighborhood: Ravenwood Hills at 4215 Bethel Church Road, which contains 112 units.
“This portfolio, near the heart of the dynamic city of Columbia, aligns ideally with our growing portfolio of Southeastern assets,” said Jeffrey Simpson, Managing Partner and Co-Founder, Arch Companies. “We have consistently acquired underperforming assets with high upside potential in economically and culturally active cities that offer diversified opportunities for residents.”
The four properties have benefited from steady occupancy and Arch plans to implement a value-add capital improvements program through its vertically integrated Arch Builders division to address deferred maintenance and deliver substantial interior upgrades. The properties will be operated by Arch’s in-house management team.
“The growing velocity of our expansive multifamily presence across the Southeast is a testament to the confidence the market is showing in Arch’s vision and strategy,” said Jared Chassen, Partner and Co-Founder, Arch Companies. “Working closely with our partners and capital providers, our vertically integrated approach is unlocking value for our tenants and our investors across the country.”
“With 4,000 units and growing, Arch has become a force in the multifamily space,” said Geoff Smith, Managing Director, Walker & Dunlop. “We continue to be impressed by their prescience and their ability to target value-add opportunities throughout the Southeast. We look forward to what Arch can deliver for Columbia given their historical success in similar markets.”
“Located at the intersection of three major thoroughfares (I-26, I-20, and I-77), this 672-unit workforce housing portfolio in Columbia is an extremely attractive opportunity to gain immediate scale and operational efficiencies in a market that is poised to continue experiencing commerce expansion and, in turn, high demand for quality affordable housing,” said John Phoenix, Senior Associate, Multifamily Advisory Group, Cushman & Wakefield, which represented Arch Companies in the acquisition.
Arch partnered with Drake Real Estate Partners in the acquisition of the portfolio, marking the second investment in a programmatic venture between the firms. Moira Concannon, Vice President of Acquisitions, said, “Drake seeks long-term, programmatic relationships with strategic partners with deep expertise and relationships in their respective property type and market. We look forward to uncovering additional opportunities alongside Arch in Southeast multifamily – a niche we have pursued and invested in for nearly a decade due to its solid fundamentals, which have only been accelerated in the past year.”
“Working with both the buyers and sellers in this portfolio was a challenging but very gratifying assignment,” said Chez Eider, of Marcus & Millichap National Multifamily Group. “Arch is a repeat client who continues to demonstrate their institutional sophistication, combined with an entrepreneurial approach in speed to work through a deal.”
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 Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 50,000 employees in over 400 offices and 60 countries. In 2020, the firm had revenue of $7.8 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.
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 1,000+ professionals in 38 offices across the nation have an unyielding commitment to client satisfaction.
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.
By: City Biz