Alpha Partners, a New York-based commercial real estate owner and developer, has acquired a portfolio of three multifamily communities in Charlotte, N.C., and Rock Hill, S.C. This marks Alpha Partners’ first multifamily purchase in the Charlotte metro area.
Altogether, Wallace Terrace and Timberstone Commons, both in Charlotte, and Kensington Townhomes in Rock Hill cover 147 units on over 11 acres. The units are just over 60% occupied, with an average unit size of 1,017 square feet.
The Kensington Townhomes multifamily community in Rock Hill, S.C.
The properties’ rent and occupancy rates are much lower than most comparable communities in the area, presenting a strong opportunity for growth and value-add improvements. “As Alpha Partners builds a vertically integrated multifamily platform, this portfolio is the first deal of our new venture in Charlotte, where we intend to commit $100 million over the next four to five years, signaling our long-term growth interest in the market,” says Fabio Nogueira, director of Alpha Partners’ Charlotte office.
Charlotte’s 25.6% job growth in the past 10 years has attracted a growing population of highly skilled young professionals and families looking for affordable places to live, and the communities are located in amenity-rich areas with access to high-end retail, entertainment, education, medical services, airports, and commuter routes.
Timberstone Commons is located between two major transportation arteries at South Tryon and W. Arrowood Road, 10 minutes from Charlotte Douglas International Airport, and five minutes from trains and I-485. Wallace Terrace is in an area undergoing new upscale development to be completed in two to three years. Kensington Townhomes is located across the street from Piedmont Medical Center Hospital in Rock Hill, at the intersection of a high-end residential neighborhood and a strip of restaurants and retailers.
“The properties are strategically located and offer tremendous investment and ‘tenant experience’ potential,” says Nogueira. “By doing our own management, deploying value-add strategies, and addressing maintenance issues, we can elevate them to their true value, which we believe is in the $16 million range.”
