Magma Equities expands in North Carolina
Magma Actions continues to expand its North Carolina multifamily portfolio with the acquisition of Litchford 315 Apartments, a newly built 240-unit community in Raleigh, North Carolina, for $83 million in an off-market deal. The transaction pushed the company’s multifamily investment in 2022 to more than $500 million to date.
The seller has not been identified by Magma. The most recent owner was a development company DeWitt Carolines, according to Yardi Matrix data. Located at 6320 Dowd Forest Drive, the property was completed in January. A 40-year HUD 221(d)(4) construction loan of approximately $33.3 million was issued by Greystone Servicing Corp. in April 2020, Yardi Matrix reported. The developer acquired the 14-acre site for $3.3 million, according to public records.
Magma founder and chief executive Ryan Hall said in a prepared statement that it was the biggest investment the company has made in North Carolina. Hall said it was an example of Magma’s plan to diversify its portfolio with longer-term core assets to complement its value-added strategy.
Litchford 315 offers one-, two-, and three-bedroom units spread across 10 three-story residential buildings. Apartment features include higher than standard ceiling heights, washer/dryers in all units, and private balconies or patios. Community amenities include a clubhouse, resort-style swimming pool, fitness center, business center, billiards and game lounge, dog park, and 460 parking spaces. The property was 96% leased at closing.
Chris Herrlinger, Magma’s director of asset management and head of the company’s new office in Charlotte, North Carolina, said in prepared remarks that Raleigh is one of the three fastest growing metropolises in the country. . He said with demand reaching new highs, occupancy and rent growth will continue to climb. Herrlinger said the Magma team believes in the long-term viability of the Raleigh multi-family market and the company is well positioned to continue to build on the momentum that began four years ago with the goal of building a significant portfolio. In the region.
Develop the portfolio
Litchford 315 is Magma’s fourth multi-family investment in North Carolina this year and the company’s ninth overall in 2022, nearly equaling its total investment in 2021. In January, a partnership including Magma and funds managed by Franklin Templeton acquired Cameron SouthPark, a 309-unit apartment community in Charlotte in an off-market transaction for $79.3 million. This was the company’s first multi-family purchase in Charlotte. A joint venture between Magma and Prudent Growth Partners acquired Keystone Apartments, a 202-unit multifamily community in Fayetteville, North Carolina, in April for $23.7 million. Also in April, Magma acquired The Hyatt Place North Raleigh-Midtown, a recently closed hotel in Raleigh, for $18 million with plans to convert the 127-key hotel into 128 studios and one-bedroom apartments, according to the Triangular business diary.
Magma, a company focused on repositioning Class A and B apartment communities across the country, has been investing in North Carolina since 2018 and growing rapidly throughout the Sunbelt. The company has also invested in Nashville, Smyrna and Knoxville in Tennessee as well as in Texas. In April, Magma and funds managed by Franklin Templeton acquired Palencia Apartment Homes, a 281-unit apartment community in North Dallas. This was the company’s fourth multi-family investment in the Dallas/Ft. Worth metro since opening a regional headquarters there last year. Magma also acquired a Texas portfolio of 1,361 multi-family units in April from Hilltop Residential, with most of the properties located in Dallas/Ft. Worth, Houston and San Antonio markets. The acquisition marked Magma’s entry into the San Antonio and Houston multifamily markets.
Magma’s current portfolio also includes multi-family properties in its home state of California, as well as Arizona and Washington.