By Laura Calugar
A joint venture between Coastal Ridge Real Estate and H. Katz Capital purchased The Preserve at Forest Creek, a 414-unit, Class A asset in Memphis, Tenn. The $56.6 million deal marks Coastal Ridge’s first acquisition in the state and its 17th in partnership with H. Katz Capital. LivCor, a wholly owned subsidiary of Blackstone, sold the apartment community.
Located at 9230 Thornbury Blvd., The Preserve at Forest Creek is near Germantown, Collierville and downtown Memphis, Tenn. The property is situated at the entrance to the Nonconnah Technology Corridor, just three miles from FedEx Corp.’s headquarters with direct access to Route 385, which connects with interstates 240 and 269. The Carriage Crossing shopping mall is a short drive east and the Centennial Commons Shopping Center is west of the property. Built in 2008, The Preserve at Forest Creek features 108 one-, 246 two- and 60 three-bedroom units, with rents ranging from $929 to $1,518.
- a clubhouse with bar
- heated swimming pool
- indoor sports court
- fitness center
- tennis court
- business center
- 414 parking spaces
In-unit amenities include tile and wood floors, crown molding, maple cabinets, nine-foot ceilings, Roman style tubs, marble bath vanities, private patios/balconies and washers/dryers.
Value-add business plan
According to Yardi Matrix data, the 18-building community last traded in 2015, when LivCor purchased it from Praedium Group for $51.3 million, or $123,913 per square foot. Since the beginning of this year, occupancy has consistently decelerated to 90.2% as of June 2017.
“The Preserve at Forest Creek has tremendous upside that will be driven by our value add business plan which we expect will better position the property to meet the current demand for premier multifamily living. We will continue to look for opportunities to grow our portfolio in Tennessee and throughout the south,” said Coastal Ridge Real Estate Managing Partner Patrick McBride, in a prepared statement.
The median household income within a five-mile radius of the property is $108,000, roughly $40,000 higher than the Memphis MSA.
Image courtesy of Coastal Ridge Real Estate