Chapel Hill, NC (August 30, 2010) — Atlanta-headquartered ARA, the largest privately held, full-service investment advisory brokerage firm in the nation focusing exclusively on the multihousing industry, announced the sale of The Pointe at Chapel Hill, a 240-unit Class A community located in Chapel Hill, NC.
ARA Charlotte, NC- based principals Dean Smith and Blake Okland represented long-term client and Chicago, IL-based Sherman Residential, a privately held real estate firm that focuses on apartment ownership and management, in the sales transaction.
Sherman Residential acquired the Class A community at the bottom of the market cycle, a little more than year ago, from Principal Financial. The rapid improvement in market fundamentals in the Triangle market, as evidenced by more than 25,000 jobs created in the last six months, coupled with over 2,000 units absorption at a time when virtually no new units are being delivered, accelerated their strategy to sell in 2010. However, with a Freddie Mac assumable debt requirement of 50% LTV, they knew their universe of buyers would be somewhat limited.
According to ARA's Charlotte, NC-based principal Dean Smith, "Given the positive movement in market fundamentals and the quality of this asset, we would have likely seen 40 or more offers on this transaction had we marketed it broadly however, Sherman Residential knew that the debt assumption requirement would quickly eliminate a number of potential buyers and preferred not to stress the property nor it's leasing staff by running extraneous tours through the property needlessly."
The three-story garden walk-up property was acquired by Chicago, IL-based, institutional advisor, Henderson Global Investors, for $25.4 million or $105,937 a unit.
According to ARA's Smith, "The Chapel Hill market is one of the highest barrier-to-entry markets in the Southeast. Less than one thousand units have been added to the market since 2000 largely due to the local planning department's desire to fiercely protect the college-town's charm and infrastructure. "
The community's many high-end features, uncommonly large average size floor plans of 1,100 square feet, and accessibility to universities and major employers such as UNC, Duke University and Research Triangle Park, serve as a real draw for its tenant base which is comprised of graduate students, empty nesters and local area medical and academic employees.
To schedule an interview with an ARA executive regarding this transaction or for more information about ARA, please contact Lisa Robinson at lrobinson@ARAusa.com or 678.553.9360, or Amy Holland at aholland@arausa.com or 678.553.9366.
About ARA
Atlanta-headquartered ARA is the largest privately held, full-service investment advisory firm in the nation that focuses exclusively on the brokerage, financing and capital sourcing of multihousing properties including conventional, distressed, affordable, seniors, student, manufactured housing, note sales and multihousing land. ARA is comprised of the country's top investment professionals who leverage a unique and fully integrated cooperative business platform of shared information, relationships and technology driven solutions. ARA's unified enterprise approach ensures that clients are delivered the broadest asset exposure, effective matching of buyers and sellers, and the shortest transaction timeframes in the industry. The combination of resources, unparalleled market expertise and nationwide presence in the multihousing marketplace has resulted in average annual production volume of $6.3 billion in real estate transactions since 2003. For detailed information on ARA's extensive multihousing investment services, visit www.arausa.com.