CHARLOTTE, NC – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has closed the $20.75 million sale of Regency Place Apartments (Regency Place), a 180-unit, garden-style apartment community in the West Raleigh submarket of Raleigh, North Carolina.
HFF marketed the property on behalf of the seller, Covenant Capital Group. Towne Properties (Towne) purchased the asset free and clear of existing debt. Regency Place is Towne’s first acquisition in North Carolina and in the southeastern region of the United States.
Regency Place is located at 6210 St. Regis Circle near the nexus of Interstates 40 and 440. The property’s centralized location within the Raleigh-Cary MSA provides connectivity to downtown Raleigh’s burgeoning tech hub and other high-growth employment centers such as North Carolina State University and Cary’s Weston area, which is home to companies, including SAS, MetLife and Fidelity Investments. Regency Place comprises nine three-story residential buildings with a mix of one- and two-bedroom units averaging 848 square feet each. During the past two years, the property has undergone renovations to upgrade amenity spaces, exterior features and unit interiors. Exterior and common area improvements include clubhouse modernization, fitness center expansion with new equipment, a new dog park, new pool pavilion and deck, landscape enhancement and new exterior paint. Unit upgrades include the addition of stainless steel appliances, granite countertops, new cabinet doors, new hardware and lighting, fresh interior paint and faux-wood flooring.
The HFF investment sales team representing the seller was led by managing director Justin Good, director Allan Lynch, managing director Jeff Glenn and senior managing director Jason Nettles.
“HFF is excited to be a part of Towne’s first acquisition in the Southeast, especially as operations at the property have continued to improve in recent months,” Good stated. “As core-plus capital has flocked to Raleigh-Durham, the market responded favorably to Regency Place’s unique repositioning incorporating high-caliber finishes for the vintage asset.”
About Covenant Capital Group
Covenant Capital Group (Covenant), founded in 2001, is a value-add investment manager with an exclusive focus on the acquisition and renovation of apartment communities in major southeastern and Mid-Atlantic markets. Covenant focuses on transforming and repositioning properties into premier, institutional quality assets while maximizing operating cash flow. Covenant has $1.1 billion in real estate assets under management and controls over 9,500 apartment units.
Towne Properties
Founded in 1961, Towne Properties is one of the most-honored property management and development companies in the Midwest. The company’s current management portfolio comprises a mix of 16,000 market-rate, student housing and value-add apartments; more than 115,000 condominium and homeowner association homes; more than 800,000 square feet of office and retail space; and recreational facilities, including a marina and tennis club. Headquartered in Cincinnati, Ohio, the company also has regional offices located in Dayton and Columbus, Ohio; Indianapolis, Indiana; Northern Kentucky; Raleigh, North Carolina; and Naples, Florida. For more information, visit towneproperties.com
About HFF
Holliday Fenoglio Fowler, L.P. (“HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 24 offices and is a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated 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.