CHARLOTTE, NORTH CAROLINA (April 23, 2020) – NorthMarq arranged the $28.5 financing of Tuscan Heights Apartments for STM Development based in Upstate South Carolina. The property is a 252-unit community in the active Greer submarket. The property has an irreplaceable location, benefitting from immediate access to I-85 (116,000 vehicles east/west per day) and located just north of the I-85 and the Pelham Road interchange. The community sits adjacent to Michelin’s North American Headquarters.
NorthMarq’s Charlotte Debt & Equity team of Dave Stewart, Vice President, and Ryan Taylor, Investment Analyst secured the refinancing for the property through Freddie Mac. The loan was structured with three years of interest only on a ten-year term and sub-3.30 percent fixed rate pricing.
“In an extremely turbulent time in the market, we were able to deliver a deal that closed as submitted. This surety of execution is what has given our clients the confidence to work with NorthMarq on both their debt and equity needs,” said Stewart.
The property is situated in the highly sought after and fast-growing Greenville-Spartanburg market. The 2009-built community features Class A living spaces with amenities such as a resort-style pool, 24/7 fitness center and tanning salon. The Greer submarket is strong with 7.3 percent population growth in the past five years. The surrounding demographics are compelling, with median household income above $75,000 within three miles of the asset and home values in a one-mile vicinity averaging just under $400,000.
Greenville has been a strong market for multifamily investors over the past several quarters, with population growth of approximately 10 percent since 2010. The inexpensive cost of doing business compared to other major Carolina metros has been a boon for corporations and real estate investors. Robust multifamily demand has allowed owners to push rents higher than their historical averages while taking advantage of compressed vacancy figures. Major manufacturers such as BMW, Pierburg US and Global Lending Services continue to invest in the area and add new jobs, which bodes well for multifamily owners in the near future.