An investment fund sponsored by Boston-area apartment investor and developer Northland last year purchased its third multifamily property in Charleston, South Carolina, where it has invested over $200 million to assemble a portfolio of 813 apartment units.
The sale of the apartment property, 511 Meeting, set a new price per-unit record for downtown Charleston and was the culmination of a successful marketing project that reaffirmed the strong appeal of Charleston's core multifamily investment market. The sale has been selected by a panel of local industry professionals as the winner of the 2023 CoStar Impact Award for sale of the year for the Charleston, South Carolina, region.
Northland and the seller, New York-based developer Spandrel Development Partners, persevered through a volatile capital markets environment last year during the second and third quarters to secure the transaction.
“Since our entrance into the Charleston market in 2019 with The Standard on James Island and Wharf 7 on Daniel Island, we’ve been actively seeking additional opportunities for expansion onto the Peninsula,” Bruno Setteducati, director of investments at Northland, said in a statement announcing the purchase. “Located in the vibrant North Meeting Street neighborhood, 511 Meeting offers residents proximity to all that Charleston’s Midtown has to offer. The property’s thoughtful mixed-use integration into the historic streetscape and prime location are some of the many factors that make it a differentiator in this market, and a great fit for Northland’s portfolio."
A major reason for apartment investors' interest is that Charleston has experienced 23% population growth since 2010 and has the highest concentration of young professionals among all mid-size metropolitan areas, those with 500,000 to 1 million in population, according to CBRE Research.
About the project: The six-story, podium-style, mid-rise building comprises 221 studio, one- and two-bedroom apartments, 33 of which are rent-restricted. 511 Meeting's dedicated street-level retail space is occupied by Blum, a local favorite coffee and wine bar.
What the judges said: "511 Meeting Street set a new record per unit in downtown Charleston. Its development served as the catalyst and major test for multifamily development along the Meeting Street corridor connecting the crosstown to downtown proper. Now 511 Meeting Street is the center of everything in that part of town. A great transaction involving trophy real estate," said Elyse Welch, partner at Carolina Retail Experts.
"This a very well-deserving recognition based on when this property delivered in a volatile market during COVID while still being able to be competitive and attract renters," said Regional Vice President Chris Carter of Carter-Haston Real Estate Services Inc.
They made it happen: Senior Vice Presidents Jim Sewell and David Lansbury, Vice President Erika Maston, and Paul Berry, vice chairman comprised the CBRE team that marketed the property and arranged the sale.
