Summary

Built in 1991, Amberwood at Lochmere is well-located in the master planned community of Lochmere within Cary, North Carolina. The property is located at the northeast corner of the intersection of Lochmere Drive and Cary Parkway. The property is in close proximity to Cary’s central business district (3.8 miles) as well as Cary’s Research Triangle Park (15 minute drive). Research Triangle Park (RTP) spans nearly 7,000 acres housing over 140 organizations. Nearly 50,000 employees work in the 18 million sf at an average salary of approximately $55,000. The daily drive-by traffic along Cary Parkway is significant. As part of the capital improvement budget, the Operator plans to improve the landscaping and signage along the property line next to Cary Parkway in order to further improve the marketability of the apartments.

Income-oriented investment profile with current return representing nearly 60% of the total return. Strategy includes newly originated, long term fixed rate financing to lock-in low rates to protect the current return without sacrificing the ability to service the debt. The real estate acquisition price is approximately 80% of replacement cost. Market fundamentals have stabilized with indications of an up-cycle occurring over the next three to five years. The up-cycle for apartment investing is being driven by a combination of renewed employment growth, lack of new construction, and reduced affordability of single family housing as interest rates rise. The strategy will also include a minor capital improvement program to enhance the asset’s long term value, increase curb appeal and reduce on-going maintenance.