Clarion Partners, in partnership with Blackfin Real Estate Investors, has acquired a multifamily portfolio with 12 communities and 3,564 units on behalf of its largest commingled fund for $885.5 million.
The garden-style Class B communities, which were built between 1972 and 1995, are located in six high-growth Sun Belt markets—Melbourne, Orlando, and Tampa, Florida; Charlotte and Wilmington, North Carolina; and Nashville, Tennessee.
The communities include Cape Harbor by ARIUM, Clear Run by ARIUM, and Mill Creek by ARIUM in Wilmington; Mallard Creek by ARIUM, Northlake by ARIUM, and Harris Pond by ARIUM in Charlotte; The Club by ARIUM in Antioch, Tennessee, and Williamsburg by ARIUM in Hendersonville, Tennessee; and Heron Lake by ARIUM and The Vineyards by ARIUM in Kissimmee, Florida, Lake Pointe by ARIUM in Melbourne, Florida, and Bay Cove by ARIUM in Clearwater, Florida.
“This acquisition further strengthens our position in fast-growing Sun Belt markets and also gives us exposure to a high-growth portfolio of seasoned multifamily properties, which we can own below replacement cost and renovate for yield enhancement,” said Thomas James, managing director at Clarion Partners.
According to Clarion Partners, it is partnering with Blackfin to execute the business plan, which includes the upgrade of unit interiors and community amenities. A majority of the units will receive new vinyl floors, appliances, countertops, and LED lighting. Greystar will serve as the property manager of the Florida and Tennessee communities, and Drucker & Falk for the six North Carolina communities.
“We are thrilled to be partnering with Clarion on our third transaction in 12 months. This is a great opportunity for us to expand our relationship with Clarion and leverage our construction expertise across the Southeast,” said Doug Root, co-founder and managing partner at Blackfin.
The 12-property portfolio was acquired from CARROLL, in partnership with PGIM Real Estate. It was originally part of a 2017 acquisition of a 28-property workforce housing portfolio, which marked the first joint-venture transaction between CARROLL and PGIM Real Estate’s U.S. core-plus equity strategy.
During the four-year hold, CARROLL and PGIM Real Estate made sustainability improvements—including water-saving devices, LED lighting, and trash diversion and recycling efforts—to add value to the assets.
“Closing out this portfolio is a major milestone for CARROLL and our major investors,” said founder and CEO M. Patrick Carroll. “These properties were directly aligned with our investment strategy as part of our workforce housing platform that included an early focus on the Sun Belt region and were integral assets in the diversity of our portfolio. We were proud to partner with PGIM to deliver quality housing while maintaining our goal of improving resident life to all of these markets throughout our hold.”
DLA Piper served as legal counsel for Clarion Partners, and the Eastdil Secured investment sales team facilitated the transaction.