Recent Acquisitions
At Lucern Capital Partners, we employ extensive due diligence and disciplined underwriting practices throughout our acquisition process. Our team targets mismanaged or underperforming assets that we believe can be improved through a value-add strategy and active asset management.
- West Charlotte
- 102 Units
- 14.00%+ Projected IRR
- Value-Add
- $10.2 Million Purchase Price
- Off-Market Deal
- Fund Asset
- West Charlotte
- 274 Units
- 14.00%+ Projected IRR
- Value-Add
- $29.1 Million Purchase Price
- Off-Market Deal
- Fund Asset
- West Charlotte
- 110 Units
- 14.00%+ Projected IRR
- Value-Add
- $9.3 Million Purchase Price
- Off-Market Deal
- Syndicate Deal
- Old City
- 42 Units
- 14.00%+ Projected IRR
- Value-Add
- $12.5 Million Purchase Price
- Off-Market Deal
- Fund Asset
Case Studies
Our team leverages its deep network of relationships and boots on the ground investment approach to identify opportunistic real estate assets with operational weaknesses that are under-capitalized or have underlying value that has yet to be realized. We then formulate a defined strategy to actively manage each property, making strategic capital improvements to enhance overall value.
Nevin Place Apartments
Nevin Place Apartments was built in 1998/1999 and is located in Charlotte, North Carolina’s University submarket with close proximity to both University City and Uptown Charlotte. With strong demographic trends and high affordability, apartment demand in this area has outpaced new deliveries in recent years by a generous margin.
Property Details
| Property Type | Multifamily |
| Investment Type | Equity |
| Year Built | 1998/1999 |
| Number of Units | 55 |
| Location | Charlotte, NC |
Nevin Place Apartments was built in 1998/1999 and is located in Charlotte, North Carolina’s University submarket with close proximity to both University City and Uptown Charlotte. With strong demographic trends and high affordability, apartment demand in this area has outpaced new deliveries in recent years by a generous margin.
Business Plan
- Implement a value-add capital improvement plan, including rehabilitating the interior of the units and bringing property rents to market levels (~15% upside).
- Inject approximately $3,500 per unit to improve original unit finishes to modern finishes that were in line with the market upon the turnover of units.
- Improve the exterior of the asset, including signage and branding, both online and on site.
Current Performance
- In addition to executing the initial business plan, sponsorship was able to thoughtfully allocate a portion of insurance proceeds from a single unit fire that occurred on site to implement a water/sewer billback system, construct a dog park and renovate the unit to a higher-quality finish, garnering increased rental income as proof of concept for the next prospective buyer.
- Upon realizing the value-add benefits of the business plan, sponsorship has begun exploring an early exit for Q2 2021 targeted at $9mm
Scarlet Pointe Apartments
Scarlet Pointe Apartments was built in 1974 and is located in West Charlotte, a submarket less than 6 miles from center city, The asset benefits from its close proximity to Charlotte’s largest employment centers — Uptown and Charlotte Douglas International Airport. With 48% of Uptown employees commuting for work, West Charlotte is a high-demand location for those working in the city’s major employment centers.
Property Details
| Property Type | Multifamily |
| Investment Type | Equity |
| Year Built | 1974 |
| Number of Units | 271 |
| Location | Charlotte, NC |
Scarlet Pointe Apartments was built in 1974 and is located in West Charlotte, a submarket less than 6 miles from center city, The asset benefits from its close proximity to Charlotte’s largest employment centers — Uptown and Charlotte Douglas International Airport. With 48% of Uptown employees commuting for work, West Charlotte is a high-demand location for those working in the city’s major employment centers.
Business Plan
- Scarlet Pointe Apartments was acquired off-market through the firm’s robust network of industry relationships.
- Through its trusted partners, the Lucern Capital Partners management team plans to execute its business plan by renovating the interior of 60% of the complex’s units.
- Considerable in-unit renovations and exterior improvements are projected to close the existing 22% rent gap between classic and updated units.
Current Performance
- Due to the opportunistic nature of the investment and off-market purchase, we were effectively able to purchase the asset at an 8-10% discount to market value.
- As part of our agreement with the seller, our property management team was on site to begin transitioning the asset weeks before the deal’s official closing. This enabled us to get a head start on leasing and unit renovations as well as familiarize ourselves with the asset. Since that time, occupancy has been steadily increasing and all new leases have been signed at rates well above our budgeted figures.
- Renovations at the property are progressing ahead of schedule. Approximately 20 unit renovations are either completed or in progress with a number of units preleased at rental rates that exceed our projections.
