Investment Highlights

Location: Charlotte, NC
No. of Buildings: 6
No. of Units: 144

Date Acquired: May 28, 2021
Purchase Price: $20.2M

• 100% of the units in original condition, providing us an excellent opportunity to rehab and push rents to market

• The property has excellent "bones" including 4 of 6 new roofs, PEX plumbing throughout, and all units are individually submetered for all utilities

• The immediate submarket has a proven, clear demand for value-add as the current in-place rents are substantially below renovated competitors in the area

• Very strong historic and projected submarket rent growth

• Charlotte is one of the most compelling apartment markets in the country with an excitingly strong economic engine driving fundamentals

• Very competitive debt structure as we had 5 different lenders vying for the financing

Closer Look

We purchased Stone Gate for $20,200,000 representing a 4.47% entry cap rate becoming an expected 6.1% cap rate at stabilization in month 24.

Stone Gate is located in the flourishing east submarket of Charlotte: one the fastest growing, most robust apartment MSAs in the country.  It is surrounded by competitors that have proven the clear demand for updated product. All 144 of the unit interiors remain in “classic” condition, sorely lagging the deep penetration of competitor modernization in the market.  There is substantial value-add potential to be realized.