RALEIGH, NC - Officials at The Preiss Company (TPCO), one of the nation’s largest, privately-held, student housing owner-operators, announced the acquisition of the 928-bed Valentine Commons for an undisclosed amount. The off-campus student apartment complex will undergo a $10 million renovation to further upgrade certain public and private spaces.
Ben Roelke and Ian Walker with Newmark, a global commercial real estate services provider, arranged $77,300,000 in acquisition financing through a life company lender. The five-year loan featured full-term, interest-only payments along with a low floating interest rate, flexible prepayment and a future funding facility to finance the capital upgrades program at the property.
“Valentine Commons is an ideal addition to the Preiss portfolio," said John Preiss, president of TPCO. "This iconic asset is centrally located to a plethora of schools and attractions. The NC State market has been one of the top performing markets in our portfolio, and we believe the upside potential in Valentine Commons is huge. Boasting the largest CapEx plan in the company’s history, we plan to build out new amenities, including a pool and rooftop terrace, as well as interior upgrades.”
Located steps away from NC State Campus at 3009 ME Valentine Dr., the student apartment complex serves multiple N.C. institutions of higher learning, including North Carolina State University, Meredith University, Campbell School of Law, Peace University, Shaw University, St. Augustine's University and Wake Tech. The 277-unit, 11-story building is adjacent to the Dan Allen parking garage, right around the corner from Hillsborough Street's best local restaurants and just minutes from Downtown Raleigh and District Village. Community amenities include a pool, rooftop terrace, private study rooms on every floor, business center, aerobics room, fitness center and game room with a pool table, foosball, darts, shuffleboard and a 65" TV. Valentine Commons also provides elevators, multiple trash chutes on every floor, a private parking garage, on-site management and monthly resident events.
“Valentine Commons has traditionally been more of a ‘transitional’ housing option for freshman moving out of the dorms and venturing into apartment life,” said Adam Byrley, chief operating officer of TPCO. “Our business plan is to turn the perception of this asset on its head with top-tier interior unit finishes, brand new amenity spaces and an exciting atmosphere that includes common spaces encouraging socialization and community. Both current and prospective residents will all be taking a second look at Valentine Commons as a community worthy of staying at throughout their time in college."
Valentine Commons offers two-, three- and four-bedroom apartments featuring private bedrooms, private bathrooms, washer and dryer and oversized windows. Apartments are fully furnished to include wood flooring throughout the common areas, plush bedroom carpeting and full kitchens equipped with all major appliances. High-speed internet, cable, electricity, water, trash and sewer services are all included in the monthly rental installment.
TPCO will invest approximately $10 million to upgrade certain public spaces and units. The pool and rooftop terrace will be fully upgraded, and apartments will receive new interior cabinets, countertops, appliances and flooring.