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The sun is going down on the Sunbelt‘s once-bountiful apartment supply, which has spurred JPMorgan Chase's (NYSE:JPM),J.P. Morgan Real Estate Income Trust, Inc.to snap up two apartment complexes totaling $65 million, the company said in a press release.
The two complexes are the Preserve at Pine Valley in Wilmington, North Carolina and Bass Lofts in Atlanta, JPMREIT said the acquisitions underscored its commitment to expanding its quality, attainable housing assets in high-growth markets.
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The Preserve At Pine Valley
The 219-unit apartment complex in Wilmington, North Carolina is Class-B housing. It was bought for $32.1 million, not including closing costs, in a 90/10 joint venture partnership with Ginkgo Residential, which specializes in workforce housing. As such, the complex feeds into the rapidly growing Wilmington metro market, whose population has increased by 70% since 2020.
Bass Lofts
Located in the upscale Little Five Points in Atlanta, Bass Lofts consists of 133 units of Class A housing in a former school. The complex offers easy access to Downtown Atlanta, Midtown, Buckhead, and major highways. It is currently 96% leased and was purchased for $34.8 million, not including closing costs.
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Cognizant of the dwindling supply of apartments in the Sunbelt and the stabilizing of rents, JPREIT bought at an opportune time to leverage demand.
“These acquisitions underscore our confidence in the residential sector and our belief in the continued growth and resilience of the housing market. As we navigate an environment where homeownership remains significantly more costly than renting, we see a sustained demand for rental properties,” Chad Tredway, CEO and chair of JPMREIT, said in the press release.
“The Sunbelt region is experiencing declining supply amidst continued population and wage growth, making it a focal point for our investment strategy,” Doug Schwartz, co-president of JPMREIT, added.