Congratulations to CEO and Founder Jim Anthony, and each of the investment, acquisition and development team members who executed multiple transactions this year. We share with you a few highlights:
Campus North – This 64,500 square foot office complex located at the corner of Spring Forest and Falls of Neuse Road in North Raleigh sold in December for $8 million dollars, or $124 per square foot. Prior to this final phase of disposition, the project sold off excess land for a Sunrise Senior Living development, and in a joint venture, land in the rear of the property was contributed to development of a Class A 188-unit apartment called Meridian at Sutton Square.
905 Ellis Road – We had a successful exit on the sale of 11.73 acres of land in Durham, NC, which is fully leased to a modular construction office and storage operator. Investment partners were able to reap strong cashflow from rents each month until the lease was restructured and converted to true NNN under a 10-year term with increased market rents. The sponsor was able to achieve 6.3x times the total cash invested in the property and produce a 39% IRR return to investors.
Highland Green Apartments – The 50-unit affordable housing project, located in Henderson, NC sold for $90,000 per unit in December. The project had been held since its original development in 2003. Investors were able to harvest $2.1 million in yield at the time of sale.
Lee Ave – APG Capital acquired a 96,700 square foot vacant industrial building in Sanford, NC. The property has been successfully leased to 100% occupancy and will be held for cash flow.
1040 Vision Drive – APG Capital acquired a 55,000 square foot Lifetime Fitness facility located at the corner of US 64 and Highway 55 in Apex, North Carolina. The location of this investment is driving tremendous long-term value, as Apex continues to mature into the fastest growing suburb in the Triangle. This acquisition is integral to APG’s income portfolio; the property has a consistent history of being well maintained, a favorable rent factor, attractive financing, and the location is expected to be accretive in value over the investment lifecycle, protecting the value of the investment, while providing predictable income.
702 Oberlin Road – In December, the 59,000 square-foot office building at 702 Oberlin Road next to historic Village District in West Raleigh, sold for $12.75 million, or $216 per square foot. The seller, an investor group affiliated with APG, acquired the building for $3.9 million in 1994. The property served as a great income stream for the owners throughout the term, in part, allowing for the redevelopment of the 616 Oberlin Apartments and the Stevenson luxury condos, projects located adjacent to 702 Oberlin.
161 Rock Church Road – In October a 243,000 square foot vacant industrial manufacturing facility was acquired in Greenwood, South Carolina. The entirety of the property was later tenanted by Impresa Modular, and will serve as their mid-Atlantic modular home production plant. The investment will be held for cash flow.
Pinecroft Apartments – Pinecroft Place in Greensboro, NC was successfully sold in December. This urban, garden apartment community built in 1974 was originally acquired via the purchase of the Lender’s note. The property underwent a full renovation in 2016 and 2021, and was staffed for professional management. The 224-unit property sold for $20.6 million, or $91,964 per unit.
In July Habitat for Humanity of Wake County received its largest gift to date through Anthony Property Group and Cambridge Senior Living, owned by Jim Anthony and Kendall Oliver, respectively. The $500,000 gift was pledged by Jim Anthony and Kendall Oliver, as partners in a land sale made to Habitat in the Town of Garner. The land and gift together provide a significant boost to Habitat Wake’s strategy and vision over the next several years; it bolsters its land bank by 170 buildable lots.
Development Updates – As we close out 2021, APG Capital is pleased to announce construction will be underway in Q2 2022 at two of our mixed-use development sites; the Plaza at Rhamkatte Village in Holly Springs, and Edgewater Commons in East Raleigh.
The Plaza at Rhamkatte Village, a commercial mixed-use project, is situated on 5.5 acres at 601 Holly Springs Road across the street from a Lowes Food-anchored retail plaza. The property features a 2-story, 37,000 square-foot office building, an 8,250 square-foot single story retail building, outdoor café and seating area, and surface parking. Pre-leasing is underway for both retail and office space. Two outparcels are available for purchase.
Edgewater Commons is a massive mixed-use development situated on 60 acres at 5000 Raleigh Beach Road in East Raleigh, featuring up to 700 multifamily residential units and build for rent homes, and 220,000 square feet of neighborhood commercial and retail space. The project will be completed over three phases; Phase I construction of a nine-building, 300-unit multifamily community will be underway in Q2 2022.
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