An investment company from Maryland has purchased a large south Charlotte apartment community for $60.8 million, and plans to renovate the buildings and add more amenities.
FCP bought the 574-unit Reserve at Providence development from a California company. The former owners paid $37.3 million in 2015 for the apartments near Providence and Old Providence roads, which was previously called Landmark at Lynden Square.
“We are excited about this acquisition because of its excellent location in South Charlotte, where strong population and job growth are contributing to a wave of new construction and a corresponding decline in the workforce housing stock,” said FCP senior associate Alex Cathcart, in a statement. Workforce housing is a term that generally refers to housing that's affordable to workers such as teachers, police officers and nurses.
FCP plans to spend money on the property by building a new clubhouse and leasing center, improving the amenities such as pools and picnic areas, and turning the clubhouse into a "state-of-the-art fitness and amenity center." The development includes apartments and townhouses with one to four bedrooms, making it appealing to families, FCP said.
A one-bedroom apartment starts at just above $700 at the property.
The garden-style apartments date to 1980, according to property records. As Charlotte's apartment market continues booming, older buildings have become increasingly appealing targets to "value add" investors. Such companies buy older buildings, renovate apartments and add amenities, then raise the rent to recoup their investment.
An Observer analysis this year found such investment firms have purchased almost 13,000 apartments in Charlotte since 2013, adding to the city's growing affordability problem.