NEW YORK, NY - J.P. Morgan Real Estate Income Trust, Inc. (JPMREIT) announced the acquisition of two residential assets: The Preserve at Pine Valley in Wilmington, NC and Bass Lofts in Atlanta, GA. These strategic acquisitions underscore JPMREIT's commitment to expanding its portfolio of high-quality, attainable housing assets in high-growth markets.
The Preserve at Pine Valley, a 219-unit, Class-B housing community, was acquired in a 90/10 joint venture partnership with Ginkgo Residential, a Charlotte-based owner and operator focused on workforce housing. Situated in central Wilmington, the property offers residents convenient access to Downtown Wilmington, Wrightsville Beach, and the Novant Regional Medical Center. The property is ideally positioned to benefit from Wilmington's robust economic and demographic growth, which, to date, has resulted in a 70% cumulative increase in population since 2000. The total purchase price was $32.1 million, exclusive of closing costs.
Bass Lofts is a 133-unit, adaptive reuse, Class-A multifamily property located in the intown neighborhood of Little Five Points in Atlanta, GA. This unique asset offers a prime location with easy access to Downtown Atlanta, Midtown, and Buckhead, as well as major highways. Originally constructed in 1923 as a school, Bass Lofts is currently 96% leased, reflecting strong demand for quality housing in the area. The total purchase price was $34.8 million, exclusive of closing costs.
The residential sector is one of J.P. Morgan Asset Management's high-conviction investing themes, driven by the resilience of and strong demand for housing. The 2021 pricing bubble motivated developers to introduce new supply, which softened rents despite growing wages and strong apartment absorption. Wilmington and Atlanta are examples of markets where new supply has peaked, and rents are now firming. These JPMREIT acquisitions will benefit from a recovery in rental rates across their submarkets.
"These acquisitions underscore our confidence in the residential sector and our belief in the continued growth and resilience of the housing market. As we navigate an environment where homeownership remains significantly more costly than renting, we see a sustained demand for rental properties," Chad Tredway, CEO and Chairperson of JPMREIT.
Doug Schwartz, Co-President of JPMREIT, added, "The Sunbelt region is experiencing declining supply amidst continued population and wage growth, making it a focal point for our investment strategy. At JPMREIT, we are committed to leveraging these trends by tactically investing in assets where we can create value and in locations where economic and population growth are creating opportunities."