37th Parallel Properties Strikes a Bold Move with Groundbreaking Acquisition in Huntersville, NC
We are thrilled to comment on the latest announcement made by the prominent multifamily real estate investment firm, 37th Parallel Properties. In an exciting update, they unveiled their acquisition of Greys Harbor at Lake Norman, a robust 312-unit residential community situated in Huntersville, NC. This notable fruition holds a dual significance – serving not only as the firm’s groundbreaking investment in Charlotte, but also as a strategic maneuver for capitalizing on North Carolina’s multifamily real estate opportunities.
As leaders in the multifamily sector, we uphold such innovative decisions evolving toward refining and diversifying portfolios, especially in region-based expansion. Such bold initiatives are constructive advancements in solidifying foothold in high-growth metropolitan areas across the Southeast, as postulated by Dan Chamberlain, the Managing Partner.
Demonstrating market insightfulness, Chamberlain draws attention to the ample demand in Huntersville, a city faced with scarce apartment supply. Over the past four years, a stark comparison emerges with a nationwide upswing in apartment availabilities, while Huntersville has seen only 288 new units. Hence, the acquisition of Greys Harbor makes a strategic addition to the market offerings.
The acquisition further stands out as an economically viable option against the backdrop of the pricey local housing market. Given the average home prices crossing $620k, it curtails the prospect of homeownership, cultivating a proclivity towards rentals in the area. With residents finding renting at Greys Harbor approximately 3.4 times more affordable, it cements the decision to capitalize on the demand-supply gap.
The pragmatic understanding of market dislocations throughout the economic cycle sets 37th Parallel Properties apart. Their perspective on new supply shortages and anticipations of rental rate increments amidst increasing demand underlines their acumen. This sentiment echoes Doug Fraser’s statement, who spearheads acquisitions for the firm.
Greys Harbor’s acquisition helps onboard valuable multifamily contributors, such as Berkadia whose Freddie Mac financing route has facilitated over $400M in financing for 37th Parallel. This continually flourishing relationship aids 37th Parallel’s ambitious multifamily portfolio expansion.
It’s also notable that this venture is the launchpad investment for 37th Parallel’s second fund, 37P – Fund II. Aiming to replicate the success of Fund I and extend it to more prosperous Southeast and Texan growth markets, the fund’s global approach diversifies investments while emphasizing relative value and risk-adjusted returns.
To conclude, the 2023 disposal of several investments providing substantial returns to investors, as the firm reoriented its focuses on superior-valued assets, paints an inspiring picture of 37 Parallels Properties commitment to calculated persistence and expansion. We endorse such exemplary leadership that encourages diversification and growth in the multifamily real estate field.