Investors Management Group, Inc. completed its second and third acquisitions in Raleigh, North Carolina with the closing of Millbrook Apartments (117 units) and Lynn Lake Apartments (101 units) for $23M. This brings IMG’s total multifamily acquisitions in Raleigh’s North Hills neighborhood to $37.5M or 362 units in the last year.
IMG will operate the 218 units, constructed in 1986, as a single property. It plans to invest $2.13M in capital within the first 18-24 months of ownership to improve exterior amentities and renovate all remaining outdated unit interiors. IMG funded this acquisition with 41 investors including 5 exchanges and 7 self-directed IRAs.
Sale Date: June 12, 2018
Sale Price: $23,050,000
Per Unit: $105,734
Millbrook & Lynn Lake are located just 20 minutes from Research Triangle Park (“RTP”), the most significant employment center in the Raleigh-Durham market. More than 200 companies—including IBM, Fidelity Investments, Cisco Systems, and Nortel Networks—provide employment to over 50,000 people.
In addition, both properties are situated within an education epicenter close to 189,000 college students from three Tier-1 Research Universities – Duke University, NC State University, and the University of North Carolina at Chapel Hill – producing 50,000+ graduates annually.
Strong Market Fundamentals
Roughly 3,036 people per month– or 98 people each day– are moving to the Triangle. Wake County is projected to reach 2 million residents by 2054.
According to the latest Milken report, “The region has experienced strong job and wage growth in recent years, and short-term job gains indicate that economic momentum remains strong.” Raleigh was recently named the “No.1 Place Where Americans Are Most Satisfied Renting” and in November 2017, Forbes listed Raleigh as a Top 5 “Tech Hub That Millennials Prefer To Silicon Valley”.
Comparable properties in the North Raleigh submarket have demonstrated that upgrading properties can have an immediate lift in rents and quality of renter. IMG’s modernization plan will elevate rents that are already growing organically.
IMG believes the multifamily sector in Raleigh is poised for significant growth in rents and values, given market fundamentals, employment and population growth.
IMG has a 25-year history of multifamily acquisitions in the Southeastern U.S. totaling over 15,000 units. The acquisition of Millbrook & Lynn Lake Apartments resulted in the Company owning 362 units in close proximity in Raleigh, thus creating synergies that will enhance performance and reduce costs.
FOR MORE INFORMATION: Karlin Conklin Executive Vice President Investors Management Group, Inc. (971) 888-4010 ext. 104
All offers and sales of any securities will be made only to Accredited Investors through a Confidential Private Placement Memorandum and any exhibits and attachments thereto (collectively, the “PPM”). This communication is not the PPM, and is not intended nor shall it be construed to be an offer to sell any securities. No PPM will be presented to you unless and until IMG has first been able to validate your status as an Accredited Investor. Prior to subscribing, each investor must receive, read and fully understand the PPM which contains important disclosures, financial assumptions and risk factors, including, but not limited to, those risks set forth in the section of the PPM entitled “Risk Factors”. Each investor must base its decision to invest solely on the PPM, may rely only on the information contained in the PPM and should seek advice based on the investor’s particular circumstances from their own independent advisors. Past performance of IMG-sponsored investments may not be indicative of future results.