Family-backed Broad Creek Capital partnered with Philadelphia-based Springer Capital to expand its joint portfolio of multi-family assets through the acquisition of Square at Forest Acres in Columbia, South Carolina, and Tanglewood Apartments in Memphis, Tennessee (pictured above).
The total purchase price was $ 16.5 million, and together they consist of 364 units.
The acquisitions are the most recent investment in Broad Creek Capital’s revenue-raising strategy, which aims to generate tax-efficient, high-yielding investment income by acquiring and relocating inefficient multi-family homes across the United States. Currently, the portfolio includes more than 530 units of multi-apartment real estate.
Matthew Ruche, Co-Founder and Managing Partner of Broad Creek Capital, said: “Square and Tanglewood are ideal investments for our revenue growth strategy. Multi-family real estate in the United States remains one of the most attractive asset classes in terms of profitability and long-term capital gains, and tenant demand continues to be strong in the southeastern region of the country. Working with Springer Capital, the best-in-class real estate investment manager, we believe that the implementation of this strategy will bring significant benefits to us and our co-investors. “
“We are delighted to partner with Broad Creek on acquisitions in Columbia and Memphis. These properties are located in the southeast, in a region that is extremely attractive for long-term investments due to its affordability, strong employer base and high quality of life. The added value component of these properties is particularly important because it presents significant opportunities for immediate implementation, ”said Tom Farnoli, CEO of Springer Capital.
Tanglewood Apartments is a 199-unit residential complex built in 1975 and located in the Bartlett submarket in Memphis. Bartlett is one of the most sought after submarkets in Memphis due to easy access to highways, major employers and retail opportunities. In 2006, Tanglewood was slightly renovated with investor tax breaks, which put restrictions on rents. The business plan provides for external and internal renovations to bring the facility in line with competing properties in the submarket.
Square at Forest Acres is a 165-unit complex built in 1970 and located in Forest Acres, Columbia’s submarket. The property is located in a thriving demographic center and adjacent to an upmarket shopping corridor that includes premium grocery stores, restaurants and fitness stores. Shortly after the acquisition, extensive internal and external renovations began at the site, which are scheduled for completion in 2022.
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