Baltimore, MD – A joint venture owned by Alex. Brown Realty (ABR) and Chartwell Holdings, LLC (Chartwell) has acquired Arbor Trace Apartments, a Class B apartment community located in the Steele Creek area of Charlotte, North Carolina. ABR Chesapeake Fund IV, a value-add real estate fund sponsored by ABR, invested $7.1 million into the newly formed venture.
The apartment community was built in 2003 and is located off South Tryon Street, a primary thoroughfare with access to I-77, I-85 and I-485. The community includes 16 three-story garden-style apartment buildings and a clubhouse, and its 384-units offer an even mix of one bedroom/one bathroom units and two bedroom/two bathrooms units.
Upon acquisition, the joint venture will rebrand the community as Arbor Steele Creek Apartments and position it as a higher quality, lower cost alternative to competing properties in the Southwest Charlotte submarket. “We see Arbor Steele Creek as a great opportunity to reposition a well-located property,” said Todd Abedon, co-founder and principal of Chartwell. “Operating fundamentals in the submarket were very strong at year-end and we anticipate fundamentals will continue to improve given limited new supply in the pipeline.”
The joint venture plans to complete approximately $950,000 in exterior and interior capital improvements at the property. “The physical improvements and management changes should allow us to enhance the property’s tenant profile yet still remain the low-cost provider in the market,” noted Abedon.
As part of the acquisition, the buyer was required to assume the existing loan. “This likely limited the pool of potential buyers, which allowed us to acquire the property at a very attractive basis,” noted Tom Burton, ABR’s CIO. “Factor in the successful implementation of our business plan, and the property should yield strong annual cash on cash returns for our investors.”
This is the second joint venture between ABR and Chartwell. “We are pleased that Chartwell approached us with this opportunity and look forward to expanding our relationship with them,” commented Burton.
Alex. Brown Realty is a privately owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States. www.abrealty.com
Chartwell Holdings, LLC is a Charleston, South Carolina-based multifamily real estate investment and management company. Founded in 2000, Chartwell seeks to acquire high quality, undervalued multifamily properties in markets with strong growth prospects. Through its affiliates, Chartwell owns and manages 5,000 apartment units throughout the southeast. www.livewellchartwell.com