Magma Equities Acquires 202-Unit Apartment Community in Fayetteville, NC for $23.7 Million

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LA-based multifamily investment firm opens Charlotte, NC office to Manage Continued Growth in North Carolina and the Southeast

Keystone Apartments

Keystone Apartments

MANHATTAN BEACH, Calif.April 26, 2022PRLog — Magma Equities (“Magma”) in joint venture with Prudent Growth Partners (“Prudent Growth”) has acquired Keystone Apartments (Keystone), a 202-unit multifamily community in Fayetteville NC, in an off-market transaction for $23.675 million.

Magma is one of the most active multifamily investors in North Carolina. Keystone is the firm’s 18th acquisition in the state over the past four years and its third acquisition in North Carolina this year.

To facilitate its continued growth in the southeast and establish more operational oversight as the firm grows its local portfolio, Magma has opened a regional office in Charlotte under the direction of Chris Herrlinger, Director of Asset Management.

“As we expand our investment platform in North Carolina and surrounding markets, it was a logical and inevitable step to have boots on the ground on in the state,” said Magma Founder and Managing Principal Ryan Hall. “Not only will we be able to better identify investment opportunities in key multifamily markets within the area, the new office allows us to further our current relationships there and develop new ones.”

Constructed in 1974 and renovated in stages from 2018 through 2021, Keystone’s one- and two-bedroom apartment homes are housed in 28 two-story residential buildings on a low-density 19.13-acre site.

“This is a great addition to our multifamily portfolio and we are thrilled about partnering with Magma on this project,” said Tom Hahn, President of Prudent Growth. “This property is our fourth apartment buy in Fayetteville, and we are excited to be expanding our footprint there.”

The Magma-led joint venture plans to spend $1.5 million renovating units and improving the common areas (leasing office, fitness, pool area and other outdoor amenities) to better position the property to compete in this submarket, which continues to draft off of the growth in Raleigh-Durham.

“Keystone represents another opportunity to acquire a value-add opportunity with plenty of upside and potential for growth,” Herrlinger added. “With a limited supply of new construction in the pipeline and the market’s solid market dynamics, this property is an outstanding addition to our portfolio.”

About Magma Equities

Manhattan Beach, CA-based Magma Equities (http://www.magmaequities.com) is a diversified real estate organization focused on re-positioning Class A & B apartment communities throughout the country. Magma strives to maximize returns for investors while providing residents with homes that are environmentally friendly, efficient, and state-of-the-art. Investment decisions are based on Magma’s successful experience in the past, and more importantly, vision for the future.

About Prudent Growth Partners

Prudent Growth Partners, LLC is a private equity real estate investment company based in Chapel Hill, NC. The firm focuses on properties that tend to be overlooked by larger institutions and which provide exceptional returns on invested capital along with the possibility of longer-term capital gains achieved by expert management and future price appreciation.

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