SOLD: 218 Units — Raleigh
Total units: 218
Year built: 1986
Location: Raleigh, North Carolina
Purchase price (2018): $23 million
1031 exchanges: 5
Equity invested: $11.3 million
CapEx budget: $2 million
Sale Price (2021): $29.75 million
- Investor IRR: 12.1%
- Equity multiple: 1.34x
In the News
New York firm pays nearly $30M for apartment communities in Raleigh - Triangle Business Journal
IMG Sells Raleigh MF Portfolio for $30M - ConnectCRE Atlanta & Southeast
Warner Center Firm IMG Sells North Carolina Apartments for $30 Million - San Fernando Valley Business Journal
2 North Hills apartment complexes sold to California firm − Triangle Business Journal
IMG acquired the 218-unit portfolio in 2018 for $23.2 million. IMG funded this acquisition with 41 investors including five exchanges and seven self-directed IRAs. An additional capital budget of more than $2 million was invested to upgrade the property and improve the tenant experience.
Successful value-add projects included upgrading the clubhouses and improving the outdoor spaces with new dog parks, playgrounds, a hammock park, and pool area upgrades. Unit interiors were modernized with energy-efficient lighting, low-flow plumbing fixtures, new paint, flooring, cabinets and cabinet hardware. IMG’s renovations attracted renters who paid $70-$125 premiums for apartments upgraded with new finishes.
Both Millbrook and Lynn Lake are located 15 miles east of Research Triangle Park, the most significant employment center in the Raleigh-Durham market. The abundance of nearby high-paying jobs supports demand for luxury units from renters who have not ventured into homeownership.
Just south of the properties is a LEED Gold-Certified, award-winning $1.2 billion development known as “the ultimate outdoor gathering place.” North Hills features high-end retail, dining, Class A offices, residences, luxury hotels and park space.