The 1,993 units are likely to fetch around $200 million
Arch Companies is selling a six-property multifamily housing portfolio in the Southeast U.S. that it hopes will fetch major investor interest for the high-growth area of the country, Commercial Observer has learned.
The Manhattan-based developer has tapped JLL Capital Markets to exclusively market the five garden-style apartment properties totaling 1,993 units located in Jacksonville, Fla., Winston-Salem, N.C. and Spartanburg, S.C.. Commercial real estate experts told CO a sale of this scale could fetch around $200 million.
The portfolio includes The Arlington, The Arcadian and The Charleston, all in Winston-Salem; Riverbank and Midtown Oaks in Jacksonville; and The Abner in Spartanburg. The communities, which were constructed between 1962 and 1985, have seen occupancies trend upwards of late due in large part to significant recent upgrades with 60 percent of the units renovated.
JLL Senior Managing Director Roberto Casas and Managing Director Jeffrey Julien are leading the firm’s capital markets investment sales advisory team in representing Arch Companies. Casas and Jullien noted that the submarkets of Jacksonville, Winston-Salem and Spartanburg in the Sun Belt region are all above the national average in terms of year-over-year employment and population growth.
“This offering gives investors a unique opportunity to acquire significant scale in high-growth Southeast markets at an attractive per-unit basis,” Casas said in a statement. “Given current operations, new ownership will also see strong returns and have the ability to continue to upgrade units to further improve revenues. Furthermore, an investor can quickly and efficiently amass strong and durable cash flow in a single transaction.”
Officials at Arch Companies declined to comment on the looming sale.
By: Andrew Coen