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July 18, 2018  

PGIM Pitching Southeast Apartment Portfolio

PGIM Real Estate is marketing five multi-family properties in the Southeast with a combined value of about $415 million.

The Class-A properties, which encompass 1,403 apartments, are in Atlanta, Charlotte, Nashville, Charleston, S.C., and Boca Raton, Fla. At the estimated value of $296,000/unit, the capitalization rate would be around 4.5%. Investors can bid on individual properties or any combination.

Walker & Dunlop kicked off the marketing campaign last week for Prudential affiliate PGIM, which co-owns the properties with three different developers: Alliance Residential of Phoenix, Trammell Crow Residential of Dallas and Woodfield Investments of Arlington, Va.

The properties — four mid-rise buildings and one complex — are geared toward core investors. They are 95% occupied on average and were developed relatively recently, ranging from 2-6 years old. The marketing pitch is that they are in attractive locales with a favorable outlook for population and rent growth.

The portfolio is made up of:

The 384-unit Broadstone North Boca, at 7801 North Federal Highway in Boca Raton. Opened: 2012. Co-owner: Alliance.

The 280-unit Standard, at 215 Promenade Vista Street in Charleston. Opened: 2016. Co-owner: Woodfield.

The 276-unit Broadstone Germantown, at 1100 Third Avenue North in Nashville. Opened: 2016. Co-owner: Alliance.

The 241-unit Mercury NoDa, at 3310 North Davidson Street in Charlotte. Opened: 2016. Co-owner: Woodfield.

The 222-unit Alexan on Krog, at 44 Krog Street NE in Atlanta. Opened: 2015. Co-owner: Trammell.

Units in the portfolio range from studios to three bedrooms. The average unit encompasses 927 square feet and rents for $1,853. Some units at the 19-building Florida complex are three-level townhomes. Apartments feature nine-foot ceilings, quartz or granite counters and washer/dryers. The amenities include saltwater pools, electric-car charging stations, high-end fitness centers and pet spas.

According to marketing materials, the population in the five markets grew 2.1% on average last year, nearly double the national rate. Rent growth is projected at 3.4% this year.