Core Realty Adds to NC Holdings With $20M Buy

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GREENSBORO, NC-Core Realty Advisors has added to its North Carolina holdings with the acquisition of Hidden Lakes, a 483-unit multifamily community here, for $19.6 million. The deal, which carried a 6.31% cap rate, pushes Core Realty’s total portfolio in the state past 2,000 units.

Mark Mimms of Sperry Van Ness in Fresno, CA represented the Newport Beach, CA-based buyer. The seller, a private investor from Borup, MN, was represented by Jim Scofield of Sperry Van Ness’ Raleigh office and Ken Baucom of Pickering & Co., the property manager.

Core Realty plans some renovation work and will keep Hidden Lakes a rental property, according to Sperry Van Ness. The community, built in 1974, comprises 23 buildings in 43 acres. It features 21 studio units, 211 one-bedroom/one-bath units and 251 two-bedroom/one-bath units. Monthly rents range from $425 to $543, and Hidden Lakes in 94% occupied. The property also features five lakes, a tennis court, two swimming pools, and grilling and picnic areas.

“There have been class C apartment sales in the Triad area (Greensboro-High Point-Winston Salem) in the past 12 months at an average price of $30,226 per unit. Hidden Lakes sold at $40,580 per unit including 6.34 acres of additional land or at $40,000 per unit without the land which is 33% higher,” Scofield explains to GlobeSt.com.

“It is also interesting to note that of these sales, only two were ‘cooperative’ transactions, and both were by Sperry Van Ness. Of the remaining eight sales, three were ‘direct’ deals between the seller and buyer; one was a ‘track-shoe’ deal; and the other four were deals in which the listing broker represented both sides,” he says.

“The average price of these four non-cooperative deals was $26,627 per unit and the average cap rate (average of three out of four that we have cap rates for) was 9.17%. In comparison, Hidden Lakes sold at $40,000 per unit and a 6. 31% cap rate and combined, SVN’s two ‘cooperative’ deals sold at an average of $32,351 or 9% more than the deals of the other brokers, and at an average cap rate of 5.9%,” Scofield adds.