IMG Announces $26.7M Multifamily Sale in Raleigh
WOODLAND HILLS, CA — November 5, 2021 — Investors Management Group, Inc. (“IMG”) announced the sale of Sommerset Place Apartments, a 144-unit asset located at 6717 Six Forks Road in Raleigh. Sommerset Place traded at $26.7M ($185K/unit) and was 95% occupied at the time of sale. IMG and its investors will exchange the proceeds as part of a long-term multifamily investment strategy.
IMG purchased Sommerset Place in December 2017 for $14.3 million ($99K/unit) and completed a $1 million renovation program.
Constructed in 1983, Sommerset Place boasts open-concept one- and two-bedroom floor plans. Community amenities include a resort-style swimming pool with sundeck, grilling centers and a dog park. Its low density of sixteen units per acre gives it an exclusive feel, while the easy access to interstates 440 and 540 from Six Forks Road allow a simple commute to Research Triangle Park or the prestigious North Hills retail district.
Sommerset Place sits in an education epicenter in North Raleigh surrounded by four world-renowned Tier 1 research universities. The submarket is currently boasting 18% annual rent growth driven by the region’s thriving tech scene. According to IMG CEO Neil Schimmel, “Corporate expansions close to Sommerset, like Apple’s billion-dollar East Coast Hub, will result in long-term stability for this asset for years to come.”
ULI’s 2022 Emerging Trends in Real Estate Report named Raleigh a standout “Supernova” city among its top Magnet markets. It ranked as the No. 2 “U.S. Real Estate Market to Watch” Overall. Raleigh-Durham recently claimed another ‘top two’ spot on the 2021-22 U.S. News & World Report Best Places to Live list.
“Raleigh’s reputation as a world-class tech hub has been growing steadily for years,” notes Schimmel. “Infrastructure and high-quality lifestyle amenities are keeping pace, compounding the lower cost of living benefit.”
IMG also owns the 244-unit Seasons at Umstead Park and 188-unit Lexington Farms in Raleigh, both of which were acquired in 2019. The firm has transacted over $400 million in North Carolina since 2015. Of the properties sold, the average return was 17.5%.
Drucker + Falk was selected as the buyer. Will Mathews, Managing Director & Multifamily Capital Markets Leader at Colliers International, represented IMG in the transaction.