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Magma Equities Acquires 312-Unit Apartment Community in Durham, NC
By: Magma Equities
Magma tied up the asset and was able to complete its due diligence and secure attractive agency financing prior to the onset of the Covid-19 pandemic. Even as the economic climate shifted dramatically, Magma maintained the agreed-upon purchase price with the seller, according to Magma CFO Michael Wagar.
"As active buyers in the region, we were able to source the opportunity off-market and avoid the competitive bidding process. As a result, we were very comfortable with the price as negotiated,"
Built in 2009, Independence Park features a mix of one-, two- and three-bedroom units housed in 13, three-story residential buildings on a 23-acre site at 215 William Penn Plaza. Community amenities include swimming pool, fitness center, business center, clubhouse, 24-seat multimedia theater, tennis court, sand volleyball court, basketball court, playground and dog park.
Independence Park benefits from numerous demand drivers including its proximity to Downtown Durham and the Research Triangle Park, two of the largest employment centers in the region. It is also located two blocks from Duke Regional Hospital and directly adjacent to Voyager Academy, a K-12 charter school that ranks among the top schools in the region.
Magma will suspend renovation plans and immediately begin outreach to offer any assistance it can to keep tenants housed and "heads on beds," according to Wagar. Independence Park was 96 percent occupied at closing.
Dennis Harris at The Kirkland Company in the firm's North Carolina office represented the seller. Jesse Nichols, Princial in the Los Angeles office of Polsinelli was Magma's legal representative.
Abe Spira and Justin Hechler at Greystone secured the debt with Freddie Mac through its floating rate loan program.
About Magma Equities
Manhattan Beach, CA-based Magma Equities (http://www.magmaequities.com) is a diversified real estate organization focused on re-positioning Class B apartment communities throughout the country. We strive to maximize returns for investors while providing our residents with homes that are environmentally friendly, efficient, and state-of-the-
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