CHARLOTTE, NC – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has closed the sale of the Apartments of Stonehenge, a 452-unit, garden-style multi-housing community in the North Raleigh submarket of Raleigh, North Carolina.
HFF marketed the property on behalf of the seller, an affiliate of Ram Realty Advisors (Ram). Magnolia Capital purchased the asset.
Located at 7303 Hihenge Court, the 46.6-acre apartment community is situated in northern Raleigh’s master planned Stonehenge neighborhood less than 10 miles from downtown. The Apartments of Stonehenge is minutes away from Interstates 540 and 440, providing access to Research Triangle Park, downtown Raleigh, and major employers and lifestyle centers in North Hills and Crabtree Valley. Residents can also walk to the adjacent Stonehenge Market, a grocery-anchored shopping center that includes Harris Teeter, Starbucks and Rite Aid.
The Apartments of Stonehenge features a variety of one-, two- and three-bedroom units, as well as a best-in-market range of amenities, including a two-story clubhouse with fitness center, indoor basketball/racquetball court, three swimming pools, grilling areas, lighted tennis courts, playground, fire pit, business center, and resident lounge with demo kitchen.
A local developer originally built the Apartments of Stonehenge in four phases between 1984 and 1993. Ram acquired the community in July 2012 on behalf of Ram Realty Partners III, one of the company’s discretionary private equity funds. Following the acquisition, Ram implemented more than $2.5 million in improvements, incorporating significant interior and exterior renovations as well as updated branding and marketing. Ram fully renovated 96 units with superior finishes creating a premium offering branded The Reserve at Stonehenge. Upgrades included wood-style plank flooring, stainless steel appliances, contemporary cabinets, track lighting, new paint and plumbing. Light interior upgrades were implemented property-wide during unit turnover. Exterior renovations included new signage, improvements to the pools and amenity areas, fresh paint, roofing and other deferred maintenance. The property was approximately 94 percent occupied at closing.
“At Stonehenge, we had an opportunity to transform an established development in a great location. The renovation created a more vibrant community for our residents and generated a meaningful return for our investors,” said Jennifer Stull, Principal and Managing Director of Asset Management for Ram. “Success at Stonehenge is proof that the future of real estate in Raleigh and the Triangle is bright, and we look forward to investing in that future.”
The HFF investment sales team representing the seller was led by managing directors Jeff Glenn and Justin Good and director Allan Lynch.
"HFF is honored to have worked with Ram on their disposition and to be a part of Magnolia Capital's national debut in the Raleigh market," said Glenn. "We are bullish on North Raleigh's incredible fundamentals and excited to see the property continue to thrive."
Magnolia Capital has plans for additional property improvements during its ownership. “The Apartments of Stonehenge represented an opportunity to invest in an attractive asset in a premier location,” said Max Peek, CEO and Managing Principal of Magnolia Capital. “We have a high level of conviction in the Raleigh market going forward, and are excited to implement our business plan to further improve and modernize this community for the benefit of our residents.”
About Ram: Founded in 1978, Ram is an affiliated group of companies and partnerships that acquire, develop, and manage retail and residential properties in select high-growth markets in the Southeast. Since 1996, the company has deployed in excess of $2.5 billion of capital. Ram is currently developing projects in Florida (West Palm Beach, Boynton Beach, Hollywood, Ft. Lauderdale and Doral) and North Carolina (Chapel Hill, Durham and Charlotte). Ram is headquartered in Palm Beach Gardens, Florida and has offices in Fort Lauderdale, Florida, and Charlotte, North Carolina. For more information, visit www.ramrealestate.com.
About Magnolia Capital: Magnolia Capital is a real estate investment company focused on multifamily assets within the United States. The company employs a data-driven, relative value investment strategy to identify compelling, institutional-quality multifamily investment opportunities in primary and secondary markets in the United States. Based in Chicago, Magnolia Capital was founded in 2016 by three seasoned partners with more than $2.5 billion in transaction experience within the multifamily industry. For more information, please visit www.magnoliacap.com or contact info@magnoliacap.com.
About HFF
HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF. Holliday Fenoglio Fowler, L.P., acting by and through Holliday GP Corp., a North Carolina licensed real estate broker.