Sunbelt Fund I Updates > North Crossings Acquisition Closing Update
North Crossings Apartments
North Crossings Apartments is a 120 unit complex in Fayetteville, NC. North Crossings is a 1980's build that has original interiors throughout, allowing us to capture substantial value-add with renovations over time, premiums that we have proven at our neighboring equivalent property.
Details on the North Crossings Acquisition
- This property is within walking distance of one of our existing properties in Fayetteville, (Heather Ridge) affording us immediate operating economies of scale including sharing staff to improve service to residents, and reducing general and administrative costs.
- We have budgeted more than 10% of the purchase price for capital expenditure for this value-add process, but expect it to be rolled out slowly over time based on the local economic market environment.
- We know this location within Fayetteville well given our ownership of a neighboring asset, and it boasts strong underlying demographics ($50k+ Annual Median Income in both the 1-mile and 3-mile radius), giving us confidence in our rent growth expectations when the economy rebounds.
- The property has been run by an experienced owner-operator in the Southeast, who we know takes care of deferred maintenance as it comes up, leaving the property in good physical shape.
- While this experienced owner-operator takes good care of their properties, we also know that they tend to operate to maximize physical rather than economic occupancy, and have left rents below market for some time. As a result, we expect to acquire a property that is nearly 100% occupied and that has residents who have not seen rent increases over the past few years, where our neighboring property has achieved market rates on new leases under our ownership.