Grubb Properties Grabs Uptown Charlotte Complex
Charlotte Business Journal Article by Will Boye
In a $22 million deal, Grubb Properties has purchased the 184-unit Apartments at Quarterside, originally developed by Centro Cityworks as a condominium project.
Centro converted the three-building project to apartments in 2009 after selling only two units as condos.
Grubb bought two loans for the project totaling $27 million from Bank of America Corp. in September for $21 million, and Centro transferred the property to Grubb affiliates about a month later for a similar value. Grubb also bought back the two units that had been sold as condos.
“The cost of that project wasn’t commensurate with what an apartment community would need to be,” says Todd Williams, a vice president with Grubb. “Obviously, the delivery time frame for that project was very challenging for the ownership group.”
Quarterside is at Seventh and McDowell streets. Williams says Grubb plans to take steps to brand the property more clearly as an apartment complex.
Centro “did a good job getting it leased up as an apartment community, but the property was never fully repositioned as an apartment community,” he says. “That’s where we see the upside in this acquisition. It’s a good value for us.”
Grubb plans to install more prominent signs at Quarterside and move the leasing center to a more visible 2,400-square-foot retail space at the project along Seventh Street.
Quarterside has 11,627 square feet of retail space.
The development’s one- and two-bedroom units rent for $820 to $1,950 per month, and its townhome units rent for $1,000 to $1,500 per month.
Grubb has shifted its focus back to apartments as the multifamily market has heated up.
The Charlotte-based real estate development and management firm recently completed raising capital for its second apartment fund, Grubb Southeast Residential Fund II.
The firm plans to acquire 3,000 to 5,000 apartments, or about 30 communities, during the next two years.
The new fund participated in the Quarterside deal, along with another called Grubb Multifamily Development Fund III.
In Charlotte, Grubb also owns the Sterling Magnolia complex on Randolph Road. At Quarterside, the firm will take over leasing and management of the apartment units and retail space.
PCCP provided Grubb with $18.5 million in financinig for the acquisition.
Posted: December 02, 2011 - News | More News