STRATA EQUITY GROUP ACQUIRES TWO
MULTI-FAMILY PROPERTIES IN CHARLESTON, SC
(San Diego, CA) – San Diego-based real estate investment firm Strata Equity Group has acquired a 2-property multi-family portfolio from a family office for $87,500,000. The portfolio is the first acquisition through Strata’s recently raised real estate fund, SEREF III.
The Sage Apartments, located in the affluent Mt. Pleasant submarket, is comprised of 241 units constructed in 2012 with ground floor commercial. Aster Place, comprised of 288 units and located in the West Ashley submarket, will be extensively repositioned with a $4 million capital plan addressing units, amenities, clubhouse, and grounds. Both properties were previously self-managed by seller and acquired off-market with no broker involvement.
According to Scott Wittman, Strata’s Chief Investment Officer, “Navigating and closing transactions off-market in today’s environment is unique. We’re thrilled with the outsized yield and competitive basis this provides us in a rapidly-growing market area.”
The population growth of Charleston has outpaced the national average by 3X in recent years with Mount Pleasant recognized as the 12th fastest growing city in the US over the last decade. The Sage community was purchased subject to an existing loan while Aster Place obtained new financing, arranged by San Diego’s CBRE Capital Markets group.
“Deploying equity from our latest fund, SEREF III, into a robust growth-oriented metro provides a perfect risk-adjusted return for our investors. The Charleston MSA will benefit from a modernized Aster Place apartment community addressing the missing middle’s needs,” said Justin Shifrin, Strata’s Director of Acquisitions.
Over the past seven years Strata has acquired more than 20,000 apartment units in 75 multi-family properties across the US. In October of last year, Strata sold four multi-family properties located in Atlanta to Waterton Residential based in Chicago for nearly $320 million.
Strata Equity Group, led by Carlos D. Michan and David C. Michan, is a San Diego, CA-based family-owned real estate investment and management company founded by Carlos and his two brothers 40 years ago. Strata currently owns and manages $4+ billion of real estate assets across the US comprised of 19,000 multi-family units, 400,000 square feet of commercial space and 15,000 acres of land.
Strata was represented by the Procopio, Cory, Hargreaves & Savitch LLP legal team led by Robert Brown in San Diego.
For more information on Strata Equity Group, please visit www.strataequity.com or call the numbers listed below.