Cary Reserve in Raleigh-Durham MSA and Willow Trail in Atlanta MSA Are 1980s- and 90s-Vintage Assets With Strong Value-Add Potential and Prime Locations in Desirable Submarkets
Experienced Multifamily Investment and Development Firm Grows Portfolio Beyond 6,500 Units and $800 Million of Asset Value, Seeks New Deals in Key Southeast Markets
Hudson Capital Properties (HCP), a multifamily real estate investment and development firm focused on value-added acquisitions in Southeastern US markets and a500-unit pipeline of ground-up development projects underway in New Jersey, announced two new acquisitions that add 512 units to its Southeastern portfolio. HCP acquired Cary Reserve at Weston, a 288-unit property in Cary, NC (Raleigh-Durham MSA) for $46.8 million and Willow Trail, a 224-unit property in Norcross, GA (Atlanta MSA) for $19.3M.
“HCP’s acquisition strategy for the Southeast targets high-quality assets in great locations, with strong potential to add value through our thoughtful process ofmodernization and amenitization,” said Robert B. Cohen, II, Executive Vice President of HCP. “Cary Reserve and Willow Trail suit the strategy perfectly and we’re pleased to successfully conclude these transactions and incorporate the assets into our expanding portfolio, which now exceeds 6,500 units.”
HCP plans to invest approximately $7 millionof additional capital into strategic improvement plans for Cary Reserve and Willow Trail. Consistent with HCP’s investment approach, the improvements will target unit modernization and expanded amenity offerings for residents, building on the underlying strong asset quality and great location of each property.
Completed in 1995, Cary Reserve at Weston is ideally located in North Carolina’s Research Triangle, which provides accessibility to two of the Triangle’s largest employment nodes – home to a variety of Fortune 1000 companies – Weston Parkway Office Corridor and Research Triangle Park (RTP). Additionally, the property is situated less than a mile from the Arboretum at Weston Shopping Center, with over one million square feet of high-quality retail and dining options.Stretching over 32.7 acres, the Cary Reserve community features carports, garages and a car care center, as well as a swimming pool; tennis courts; grilling areas; a tenant lounge and business center; a billiard room; dog park and playground; and a 5,000-square-foot, state-of-the-art fitness center. HCP plans to bring all units up to the finish level of new Class A product, as well as enhancing the property’s amenity set and overall curb appeal.
Willow Trail is a garden community consisting of 14 buildings and spanning 17.24 acres in Gwinnett County, GA, one of the fastest growing counties in the country. The property is located within 10 miles of 27 million square feet of Class A office space, more than 450,000 jobs and an abundance of retail and entertainment possibilities. HCP is planning a two-pronged value-add program by first replacing the current in-place management with its third-party team from Westdale, while also performing a unit renovation program to all 224 units.
HCP targets assets that deliver immediate value through improved cash flowby seeking properties valued at or below their replacement cost, with attractive stabilized yields, and have further potential to add value through capital improvements. The firm and its principals invest considerable equity capital into its transactions and takes a true owner-operator’s view of the strategy and timeline for each investment. HCP’s target markets have high barriers-to-entry and supply constraints with regard to properties located in established neighborhoods, CBDs and in educational and medical centers, and are often in state capitals. HCP is an expert at sourcing deals, frequently transacting with capital constrained sellers that have completed some phases of value add, and with sponsor groups seeking early exit following a quick uptick in value.
“Our goal for 2018 is to continue building out our portfolio, specifically targeting acquisitions in our target markets including Atlanta, the Research Triangle [Raleigh, Durham, Chapel Hill], and Dallas-Ft. Worth, which we feel enjoy the combination of favorabledemographics and employment growth, good weather, and lower cost of living that makes certain Southeastern apartment markets so attractive,” Mr. Cohen added. “We consider ourselves a nimble, non-bureaucratic, and well-capitalized real estate buyer with a proven track record, all of which allow us to work very effectively with sellers to conclude successful transactions for all.” The firm will also be seeking acquisition opportunities in Charlotte, Tampa, Nashville, Orlando and Jacksonville.
About Hudson Capital Partners
Founded in 2009, Hudson Capital Properties (HCP) is a multifamily real estate investment and development company. Through its affiliated companies, Hudson Capital acquires, owns, and operates a portfolio of multifamily properties in the Southeastern United States that currently comprises over 6,500 units, and is currently constructing more than 500apartment units just outside of Manhattan. Led by industry leaders James S. Cohen, Frank Huttle III and Robert B. Cohen II, the HCP team has developed a track record of value creation through the acquisition, development, and management of multifamily properties. With in-house expertise in development, construction, asset management and finance, HCP has proven its ability to source opportunities, close transactions quickly and efficiently manage and perform large scale improvements on its properties.
