COLUMBIA, SC-Cottonwood Realty has acquired the 228-unit Arbors at Windsor Lake apartment complex at 8720 Windsor Lake Blvd. for just over $14 million.
The two-story property includes a pool, tennis courts and community clubhouse. The seller was New York City-based Sterling American Property, which acquired the property in 2004 as part of the SAP IV Fund. Sterling American Property senior vice president Mel Mayers handled the transaction.
Mayers tells GlobeSt.com the property was acquired as a value-add opportunity. Immediately after the acquisition, the company invested in a number of capital improvements and upgrades, including the installation of new roofs and the renovation of the clubhouse with the addition of a fitness center and Internet café.
“We had made the improvements necessary to increase rents,” says Mayers of the sale. “We’re not long-term holders of properties. Our typical hold period is three to six years.”
Cottonwood acquired the property because of perceived upside potential. “South Carolina continues to be a strong residential market in the Southeast, making it an ideal investment for Cottonwood,” Mayers says.
Mayers adds that the company will continue to invest in properties in the Southeast. The company is nearing completion of acquisitions under its fifth fund and anticipates creating a sixth fund in the coming months.