CHAPEL HILL, NC - Eller Capital Partners, a private equity real estate investment firm with specialized experience in multifamily acquisitions, renovation, and asset management, announced today the disposition of the Apartments at Midtown 501, 248-units in Chapel Hill, NC and Alta Surf Apartments, 216-units in Myrtle Beach, SC. The assets were each owned by Eller in partnership with a fund managed by DRA Advisors, a New York-based real estate investment manager.
The Apartments at Midtown 501 is a 248-unit, 21.12-acre community located just off East Franklin Street in Chapel Hill, NC near its intersection with U.S. Hwy 15-501. The location provides quick and convenient access to the University of North Carolina at Chapel Hill, UNC Hospitals and Interstates 40 and 85. The property, constructed in 1973 and formerly known as “Foxcroft Apartments,” was acquired by Eller in 2013 for $22.32 million, at which time it underwent a transformative renovation over the next two years that resulted in the creation of Midtown 501. Upon completion of the renovation, DRA Advisors joined Eller as a joint venture partner through a recapitalization that occurred in early 2016. The property was sold to New York-based Ashcroft Capital for $53.75 million on December 20.
Alta Surf Apartments is a 216-unit apartment community situated on 29-acres in Towne Centre Commons, part of the Carolina Forest submarket, just off International Drive near its intersection with Carolina Bays Parkway (Highway 31). The location provides easy access to all areas of the Myrtle Beach market and has experienced tremendous growth over the last 10 years. Alta Surf, originally constructed in 2007, was acquired by Eller in December 2012 for $17 million. DRA Advisors joined the venture through a recapitalization in early 2019, at which time a major renovation of the common areas and amenities was completed along with the commencement of a programmatic interior renovation of all apartment units. The property was sold to a private, out-of-state investor for $46.25 million on January 19.
“Both Midtown 501 and Alta Surf have been key investments in the growth of our firm over the last decade,” said Daniel Eller, CEO of Eller Capital Partners. “At the time it was acquired in 2012, Alta Surf was a large transaction for us, and it provided the necessary momentum for us to take the first step towards acquiring larger, institutionally capitalized deals. Midtown 501 remains the heaviest value-add renovation project that Eller has executed to date, the knowledge gained early-on through that project was invaluable and ultimately became the catalyst for expanding our services to include in-house construction management. Midtown 501 also represents the first joint venture in our ongoing relationship with DRA Advisors, and we are pleased with the exceptional results that we have been able to deliver through this partnership to investors of both firms.”
Eller and DRA were represented by John Munroe of Newmark in the sale of the Apartments at Midtown 501 and by Louis Smart and John Phoneix of Cushman & Wakefield in the sale of Alta Surf.