RALEIGH—It’s part of a strategy to acquire high-quality core apartment assets in high-growth areas outside primary markets. Passco Companies just snapped up its third class A multifamily community in the past nine months in Raleigh-Durham. Passco grabbed Carrington at Brier Creek, a 270-unit luxury garden-style multifamily property in Raleigh for $37.3 million.
“Our investment strategy is focused on identifying markets that are poised for growth, and Raleigh-Durham is certainly in that category,” says Gary Goodman, senior vice president of acquisitions of Passco. As its name suggests, Carrington at Brier Creek is next to the Brier Creek Country Club.
The multifamily community was built in 2004. Brier Creek Country Club is near three major universities, and less than five miles from Research Triangle Park, the area’s largest job supplier and a leading center for high-technology research and development in the country.
“One of the elements we consider when identifying our investment markets is how pro-business an area may be,” explains Goodman. “Raleigh-Durham, and especially Research Triangle Park, has emerged as an extremely pro-business market.”
As Goodman sees it, technology and medical companies are currently moving to Raleigh based on local universities’ outstanding education and research facilities. He says governmental, educational and healthcare industries also continue to thrive there.
“These sectors are some of the most recession-proof in the nation, adding to the stability of this job market,” Goodman notes. “In addition, the projected momentum of Research Triangle Park further strengthens the market’s investment potential.”
According to Goodman, Research Triangle Park’s long-term goal is to employ over 100,000 people. The area boasts the second highest rate of net in-migration of any U.S. metropolitan area over the past five years, and Raleigh’s employment growth is expected to significantly outpace the nation over the near term. Says Goodman, “This exponential job growth is anticipated to continue over the next five to 10 years, resulting in intensive demand for quality housing such as Carrington at Brier Creek.”
Carrington at Brier Creek Apartments is situated on approximately 21 acres, and offers one-, two- and three-bedroom units across 12 separate buildings. Goodman says Passco will implement various improvements to the property, including the addition of multifamily amenities such as a cyber-lounge and pet spa, as well the creation of an upgraded fitness center and model unit.
“This property is already in excellent condition, and the improvements we plan to implement will only further enhance the property, ensuring that our community remains quite competitive in this growing market,” Goodman explains. The company has spent $96.3 million on Raleigh-Durham in the past nine months.
Passco acquired the 280-unit multifamily community Encore at the Park in Durham, North Carolina for $28 million in July 2013. Later, in December 2013, the company acquired Wakefield Glen Apartments, a 246-unit luxury class A multifamily community in Raleigh for $31 million.