RICHMOND, Va., Nov. 28, 2023 /PRNewswire/ — 37th Parallel Properties, a leading multifamily real estate investment firm, announced today it has acquired Greys Harbor at Lake Norman, a 312-unit residential community located in Huntersville, NC. This acquisition marks 37th Parallel’s inaugural investment in Charlotte, the first step in strategically expanding the firm’s portfolio into North Carolina.
“This acquisition is a significant milestone in our expansion strategy across the Southeast’s high-growth metropolitan areas,” said Dan Chamberlain, Managing Partner. “Despite record new apartment supply across the country, only 288 units have been delivered in Huntersville over the past four years, and only one community is currently under construction. Demand remains strong, driven primarily by a strong housing market. With average area home prices at $620,000, renting at Greys Harbor is 3.41 times less expensive than owning a home.”
Spread over 21 acres, Greys Harbor offers one-, two-, and three-bedroom units with large floorplans averaging 1,039 square feet. Apartment and community amenities include nine-foot ceilings, private patios and balconies, a resort-style swimming pool, as well as 32 detached garages and 9 boat parking spaces.
“The acquisition of Greys Harbor highlights 37th Parallel’s ability to identify value and capitalize on market dislocations at all points in the economic cycle,” said Doug Fraser, who leads the acquisition efforts for the firm. “We expect the absence of new supply around the asset to put upward pressure on rental rates as resident demand in this supply-constrained submarket continues to grow.”
Cutt Ableson, Senior Managing Director at Berkadia, arranged fixed-rate, Freddie Mac financing for the acquisition. “Berkadia and Freddie Mac have enjoyed a great relationship with 37th Parallel, completing over $400 million in financing,” says Ableson. “We look forward to supporting this team as they focus on expanding their multifamily portfolio into new markets.”
Greys Harbor is the initial investment from 37th Parallel’s second fund, 37P – Fund II, which is currently accepting commitments. Fund II, an income and equity growth fund, will employ a similar strategy as Fund I, targeting value-add and core-plus multifamily real estate in dynamic growth markets in the Southeast and Texas. Fund I currently holds diversified investments in Atlanta, Austin, Dallas, and Houston. The realized investments from Fund I have delivered an average gross multiple of 2.24x on initial investment.
“This year, we successfully completed the sale of several assets, allowing us to reallocate capital towards assets with superior relative value and enhanced risk-adjusted returns,” said Chad Doty, Managing Partner. “Our dispositions in 2023 have resulted in average annual gross investor profit of 23.68%, and an average gross multiple of 2.25x on initial investment.”
ABOUT 37th PARALLEL PROPERTIES
37th Parallel Properties is a multifamily investment firm focused on owning and operating institutional-quality multifamily communities in the South and Southeast. Based in Richmond, VA and founded in 2008, 37th Parallel has transacted on 10,000 units representing over $1 billion in value, all while maintaining a 100% profitable track record for its family of high net worth, family office, and institutional investors.
To learn more about 37th Parallel, visit www.37parallel.com.
SOURCE 37th Parallel Properties
Originally published at https://www.prnewswire.com/news-releases/37th-parallel-properties-enters-the-charlotte-market-with-acquisition-of-greys-harbor-at-lake-norman-301999374.html
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