Florida-based Robbins Electra acquired the 408-unit Pavilion Crossing in Charlotte as its latest value-add play. The buyer did not specify the sale price, but it is planning $3.6M in upgrades to the multifamily property.
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“Our investment strategy to be overweight in Charlotte has its roots in fundamentals — job growth and population growth,” Robbins Electra CEO Joe Lubeck said. With this deal, the company owns eight apartment properties in the Charlotte market, totaling about 2,100, or a bit less than 10% of its entire portfolio, which includes properties in Georgia, Florida, Maryland, North Carolina, Texas and Virginia.
Originally developed in 2003, the property — which Robbins Electra will rename Grand Reserve at Pavilion — is at 1801 Willow Haven Lane and features one-, two- and three-bedroom units. It is about 95% occupied, which is roughly the same as the marketwide average.
According to CBRE Charlotte's latest report on the local multifamily market, put together by research analyst David Hartzell, occupancy in the multifamily sector remains strong, consistently averaging around 95% from 2012 to now. (CBRE was not involved in the Grand Reserve at Pavilion deal.)
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That kind of occupancy has spurred an understandable response from developers. CBRE data estimates that about 11,000 units are under construction in greater Charlotte, with another 12,500 on the drawing board.
The surge in multifamily development does not deter investors. "In the next two years, the total number of units absorbed will outpace the new supply,” Hartzell said.
Lubeck said the Charlotte market has more than strong fundamentals going for it, including intangibles that fall on the quality-of-life spectrum: arts, food, music, schools, quality law enforcement. "We believe all these factors enhance the value of our apartments,” he said.
Find out more about the market at our Charlotte Multifamily Growth & Expansion event on Wednesday, May 10, at the Duke Mansion. Sign up here.
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