Covenant Capital Group is pleased to announce the June 11th acquisition of Timbers Apartments in Spartanburg, South Carolina.
A commingled fund managed by Covenant Capital Group acquired Timbers Apartments, a 183-unit apartment community, for $5.6 million. The Fund obtained a new $4.3 million mortgage provided by Fannie Mae.
According to Jeff Seiters, Senior Vice President of Covenant Capital Group: “The Fund was able to acquire Timbers, a well located lender-owned asset, for well under 50% of replacement cost. The special servicer had successfully stabilized the foreclosed property, creating an excellent opportunity for Covenant to execute its value-added investment strategy, while maintaining a very attractive all-in basis. The Fund plans to substantially upgrade unit interiors and resident amenities, as well as improve curb appeal through landscape enhancements and cosmetic upgrades to the buildings. These planned improvements will allow the asset to favorably compete within a much higher asset class.”
The acquisition marks the first investment for Covenant Apartment Fund VII. The Fund will continue to target additional attractive value-add investments in apartment communities.