WILMINGTON, NC—Capstone Apartment Partners has closed the $79 million sale of Avalon Apartments: a 456-unit garden-style apartment community just off U.S. 17 in Wilmington, North Carolina. This is the largest apartment transaction in the Wilmington market thus far in 2021.
Capstone’s Caleb Troop, Austin Green, and Alex McDermott sold Avalon Apartments on behalf of Wilmington-based Evolve Companies. Evolve continues to be active within the Wilmington market, with several communities under construction in Leland, Surf City, and beyond.
“I continue to see a record amount of strong interest from investors across the Wilmington market for quality rental housing,” Troop said, “While new rental supply continues to pour into the market, well-located assets like Avalon are outperforming.”
The buyer is Gastonia-based Southwood Realty, who assumed an existing loan for Avalon’s original 372 units at a $63M valuation, and paid $16 million for a second phase of 84 units, which was just built and leased up. Southwood plans to expand on an already-started value-add program, renovating original units with new stone countertops, wood-style vinyl flooring, LED lighting package, and more.
Avalon Apartments was originally built in 2007. The community’s second phase, which was completed this summer, was fully leased-up within two months. With the addition of the second phase, the asset is now the second largest apartment community in Wilmington with 456 total units.
Last year, Capstone’s $54 million sale of Belle Meade Apartments was the largest multi-family sale of the year in the Wilmington market.
Avalon Apartments features a robust community amenity package, including a swimming pool, fitness center, tennis court, tanning bed, dog park, pet wash, community garden, clubhouse, billiards lounge, and business center. The community was 97% occupied at the time of closing.