A troubled apartment complex in Leland has a new owner after selling for a bargain.
Huntington, New York-based URS Capital Partners, a real estate investment firm, paid a little over $21 million for The Park at Village Oaks, a 126-unit apartment community at 114 Parsley Lane in Leland. The price was nearly $10 million less than the previous owner paid in 2022. Part of the reason: "The property faced significant challenges at the time of closing, with occupancy rates at a mere 45%," according to a news release.
The amenities were shut down, and no one was addressing problems within the apartments built in 2007, according to property tax records. The complex had been without management for three months, said Rebecca Windsor, who leads investor relations at URS Capital Partners. URS has changed that, she said, as they work on "quite a good deal of deferred maintenance."
Windsor said this week, "We've already implemented really good, effective, full-time staff, so we're going to cure any items that current residents are dealing with. There certainly are quite a few to handle and complete. And then we get to work... cleaning up the landscaping, making it more attractive. And then we'll probably, strategically, really start to look at how to improve the amenities. I know they're already working on the pool. I know they're already working on the clubhouse to create some good community spaces."
The company plans to continue being hands-on at the complex, renamed The Flats at Leland.
"We really want to become part of the culture of building a community and being part of this neighborhood, not just being absentee landlords," Windsor said. "That's the opposite of the way that we treat our communities."
She said her company had been looking for investments in the Wilmington area for a couple of years.
URS Capital Partners completed the transaction in 27 days from contract to closing, responding to the imminent maturity of the existing loan, according to the release. Christian DiCroce and David Lansbury of real estate brokerage CBRE's multifamily division facilitated the deal.
The release stated, "Since 2019, URS Capital Partners has made a name for itself by liquidating 15 assets at peak market pricing. In a strategic pivot, the firm is now focused on rebuilding its portfolio, with The Park at Village Oaks marking their third acquisition in 2024."
Christopher Urso, managing partner of URS, stated in the release, "This acquisition represents the exact profile of assets that we built our business on over the years, and we are very excited to enter the Wilmington market. We understand the sensitivity of timing and surety of closing in this environment. I believe we have proven to the market that we have the ability to deploy a meaningful amount of equity in a short period ... to get complicated deals completed."
The company has acquired 29 "value-add and opportunistic apartment communities totaling over 4,600 units," and it has developed more than 1,900 units since 2019, according to the release.
"We are grateful to have such a committed investor base that believes in our thesis and allows us to move quickly when the right opportunities arise," Urso stated in the release. "Our goal is to continue building our portfolio into 2025, with aspirations to acquire an additional 4-5 assets within our current geographic markets."
