CHARLESTON, SC - CREC Real Estate and Rincon Capital Partners announced they have jointly acquired Planters Trace Apartments, a 96-unit, Class B multifamily community located in West Ashley, a thriving neighborhood of Charleston, South Carolina. Terms of the transaction were not disclosed.
With more than $1 billion of real estate assets under management, CREC specializes in multifamily real estate investments in top-performing secondary cities throughout the United States. In addition to Planters Trace, CREC has recently acquired multifamily properties in Phoenix, Arizona and Dallas, Texas.
CREC plans to invest $2.8 million in value-add renovations to update common areas, amenities, and unit interiors, bringing the property on par with nearby recently repositioned residential communities.
The 10.6-acre property, built in 1974 and located at 2222 Ashley River Road, has convenient access to nearby jobs, retail and entertainment. The city of Charleston boasts a diversified economy with dynamic job growth and a low unemployment rate (2.9% as of December 2021, according to the Bureau of Labor Statistics). The state is known for business-friendly policies, and the city and region benefit from the vibrant Port of Charleston as well as a diversified economy that includes technology, aerospace, and automotive manufacturing. The West Ashley submarket maintained a 96.6% average occupancy rate throughout the third quarter of 2021, the second highest in the Charleston market, according to RealPage.
"The area around Charleston is seeing a demand for quality apartment housing, and hiring and investment trends point to that need remaining strong for the foreseeable future," said Aaron Dixon, President of CREC. "CREC sees an important value-add opportunity at Planters Trace, and we believe that this community has the potential to become a market-leading multifamily option for the growing number of residents in the Charleston area."
Mr. Dixon added, "CREC continues to focus on value-add acquisition opportunities within cities exhibiting strong demographic and fundamental characteristics, in terms of population growth, employment growth and a diversified employer base. Over the past 18 months, CREC has invested in excess of $200 million of transaction volume with a robust pipeline of future opportunities. Our firm's investment strategy focuses on enhancements to the marketability of the property through targeted capital improvements, which we believe will be well received by existing and prospective residents."