Eller Capital to Invest More Than $65M in Chapel Hill

CHAPEL HILL, NC—Locally-based Eller Capital Partners says it is investing more than $65 million in the acquisition and planned upgrades to three apartment communities here.

In the last six months the multifamily investment, development and property management company has acquired The Apartments at Midtown 501, 86 North Apartments and Timber Hollow Apartments communities in Chapel Hill. The firm plans to replace or repair aging exteriors and fully renovate unit interiors at all three properties.

The Apartments at Midtown 501, formerly known as Foxcroft Apartments, is located near the Eastgate Shopping Center. The 86 North community, formerly known as Timberlyne Village, is a short distance from the University of North Carolina at Chapel Hill's future “Carolina North” campus. Timber Hollow Apartments is located across from the future Carolina North development.

“Due to the cost and scarcity of land in Chapel Hill, combined with a lengthy and expensive entitlement process, it is very difficult to build new commercial or multifamily projects in Chapel Hill,” says Daniel Eller, president of Eller Capital Partners. “For this reason, Chapel Hill renters have had very few quality multifamily rental options. Renovating enables us to preserve the character of each community while providing long overdue upgrades that today's renters have come to expect.”

In addition to renovating the asset, Eller Capital is proposing an expansion to the existing community as a component of its Timber Hollow project. If approved by the Chapel Hill Town Council, the firm says it will become the first developer in Chapel Hill history to make a commitment to offering dedicated on-site affordable housing units in a rental project. The proposal designates that 14 apartment units be made available to applicants that fall below the average AMI.