Family office-backed Broad Creek Capital has partnered with Philly-based Springer Capital to expand their joint portfolio of multifamily assets with the acquisitions of the Square at Forest Acres in Columbia, South Carolina and Tanglewood Apartments in Memphis, Tennessee (pictured top).
The total purchase price was $16.5M and the two properties together consist of 364 units.
The acquisitions are the most recent investments in Broad Creek Capital’s Enhanced Income Strategy, which seeks to provide tax-efficient high yield investment income via the acquisition and repositioning of underperforming multifamily properties throughout the United States. The portfolio currently totals over 530 units of multifamily real estate.
Matthew Ruesch, Co-Founder and Managing Partner of Broad Creek Capital stated, “Square and Tanglewood are ideal investments for our Enhanced Income Strategy. U.S. multifamily real estate remains one of the most attractive asset classes for yield and long-term capital appreciation, and the southeast region of the country continues to see strong renter demand. By partnering with Springer Capital, a best in-class real estate investment manager, we believe the execution of this strategy will create substantial value for us and our co-investors.”
“We are excited to partner with Broad Creek on these acquisitions in Columbia and Memphis. These properties are located in the southeast, a region that is extremely attractive for long-term investment due to its affordability, strong employer bases, and well-regarded quality of life. The value-add component of these properties is particularly compelling because it provides significant opportunity for near-term realization,” said Tom Farnoly, Principal at Springer Capital.
Tanglewood Apartments is a 199-unit apartment community built in 1975 and located in the Bartlett submarket of Memphis. Bartlett is one of the most sought-after submarkets in Memphis due to its easy access to highways, major employers, and retail options. Tanglewood was lightly renovated in 2006 utilizing tax credit investor equity which placed affordability restrictions on rents. The business plan calls for exterior and interior renovations to bring the property in line with competing properties in the submarket.
Square at Forest Acres is a 165-unit apartment complex built in 1970 and located in Forest Acres, a submarket of Columbia. The property is in an affluent demographic center and is near higher-end retail corridor which includes premium brand grocers, restaurants, and fitness retailers. Extensive interior and exterior renovations on Square commenced shortly after acquisition and are scheduled for completion in 2022.