NEW YORK – Arch Companies, a vertically integrated, national real estate owner, operator and developer with a growing and diverse national portfolio, is pleased to announce the $199 million sale of 1,993 multifamily units across six properties in the high-growth markets of Winston-Salem, North Carolina; Spartanburg, South Carolina; and Jacksonville, Florida.
The properties were improved through a robust value-add strategy, with 59 percent of all units having been renovated by Arch through more than $15.5 million in capital expenditures in the last two years. This has led to an 11 percent rent premium for renovated units.
The properties in the sale include:
- The Arlington, a 294-unit multifamily property in Winston-Salem, North Carolina, at 3411 Old Vineyard Road
- The Arcadian, a 285-unit multifamily property in Winston-Salem, North Carolina, at 1805 Franciscan Drive
- The Charleston, a 234-unit multifamily property in Winston-Salem, North Carolina, at 1010 Oak Grove Road
- The Abner, a 312-unit multifamily property in Spartanburg, South Carolina, at 408 Abner Road
- Riverbank, a 692-unit multifamily property in Jacksonville, Florida, at 1591 Lane Avenue South
- Midtown Oaks, a 176-unit multifamily property in Jacksonville, Florida, at 1706 Art Museum Drive
“We are excited to realize the rapid appreciation of these properties through the vision and dedication of our whole Arch team,” said Jeffrey Simpson, Managing Partner, Arch Companies. “Our team was able to identify market shifts underway before the pandemic and through analysis and deep knowledge of the national real estate landscape, were able to identify underperforming assets in strong markets outside New York City with robust investment upside.”
The sale is indicative of the overall success of Arch’s large-scale investment in strategic urban markets across the Southeast region, where the firm has assembled approximately 5,000 units and driven improvements across the properties. Arch’s national portfolio includes a significant value-add multifamily component in numerous states, including Florida, Connecticut, North Carolina, South Carolina, California, and Alabama.
“Our team did a phenomenal job to turn around these assets,” said Jared Chassen, Partner, Arch Companies. “We were able to improve the value of the apartments substantially while also improving the experiences of current residents without burdensome rent increases, which remains an utmost priority for Arch.”
Arch was represented in the sale by JLL Capital Markets and Furman Capital Advisors, the investment division of NAI Earle Furman and NAI Hallmark. The JLL team was led by Senior Managing Director Jeffrey Julien and Senior Managing Director Roberto Casas and supported by Director Vic Ciancetta, Senior Managing Director Bill Weber, Managing Director Bill Shippen and Vice President Denise Fansler. The NAI team was led by Managing Director Kay Hill, Director and Shareholder Bern Dupree and Senior Vice President, Multifamily Investment Sales John Rutherford.
“Arch Companies skillfully assembled a very attractive value-add multi-housing portfolio in Southeast growth markets, and as such, there was tremendous market interest to acquire the portfolio,” said Julien and Casas.
“We were pleased to work alongside Jones Lang LaSalle to facilitate the sale of this portfolio,” said Hill, Dupree and Rutherford. “These markets have benefited from tremendous rent growth and these well-located assets have been teed up by current ownership for successful repositioning by the next investor. We are excited that the buyer will benefit from the strong tailwinds in these markets and have a proven roadmap for future success.”
About NAI Hallmark
NAI Hallmark is a full-service commercial real estate company specializing in sales and leasing brokerage, property and facilities management, and corporate services in Northeast Florida. Established in 1993, NAI Hallmark is currently involved in the leasing and/or management of a portfolio in excess of 6 million square feet of office, industrial and retail properties and is one of the leading investment sales practices in Northeast Florida. As a member of the NAI Global network, NAI Hallmark is also connected to the largest network of independent commercial real estate firms worldwide. Learn more at naihallmark.com.
About NAI Global
NAI Global is a leading global commercial real estate brokerage firm. NAI Global offices are leaders in their local markets and work in unison to provide clients with exceptional solutions to their commercial real estate needs. NAI Global has more than 300 offices strategically located throughout North America, Latin America and the Caribbean, Europe, Africa and Asia Pacific, with over 5,100 local market professionals managing in excess of 1.1 billion square feet of property and facilities. Annually, NAI Global completes in excess of $20 billion in commercial real estate transactions throughout the world.
NAI Global provides a complete range of corporate and institutional real estate services, including brokerage and leasing, property and facilities management, real estate investment and capital market services, due diligence, global supply chain and logistics consulting, and related advisory services.
To learn more, visit www.naiglobal.com or www.naiglobalnewslink.com.
About Furman Capital Advisors
Furman Capital Advisors is the Investment Services Division of NAI Earle Furman. Headquartered in Greenville, SC, Furman Capital Advisors is solely focused on the sale of investment real estate in the southeastern region of the United States. Providing a platform that offers reach to local, regional, national, and international purchasers, FCA celebrates a number one market share within its target markets. Services include Real estate acquisitions, Dispositions, 1031 exchanges, Portfolio management, and Loan workouts of various property types. Since 1986, Furman Capital Advisors has worked with capital funds, institutional advisors, REITs, lenders, entrepreneurs, and private investors locally, regionally, and nationally to ensure that a client’s business and investment goals are met and exceeded. By anticipating trends and identifying market opportunities, knowledgeable CRE professionals are able to maximize returns for their clients in an ever-changing market.
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion, operations in over 80 countries and a global workforce of more than 95,000 as of September 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Arch Companies
Arch Companies is a vertically integrated real estate owner, operator, and developer with an active investment portfolio of more than 3.4 million square feet across the United States. Founded in 2017 by Jeffrey Simpson and Jared Chassen, Arch specializes in real estate investment, development, and management with a concentration on primary and secondary markets. The company has three investment verticals, value add multi-family, ground up development and white knight capital. Arch differentiates itself by providing hands-on real estate investment management, creative deal structuring, and transparent communication with partners. Arch’s vertically integrated platform allows for complete control and oversight of the business plan throughout the life cycle of the investment. archcorealestate.com
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