Continental Realty Corporation (CRC), a Baltimore-based real estate investment and management company, has announced the selection of Elisabeth Mygatt as Director of Multifamily Asset Management. She was formerly Director of Asset Management, Multifamily for Johnson Development Associates, Inc.

In her new role, Mygatt will oversee all multifamily asset management functions, including the review of new acquisitions, onboarding of new assets, operational and budgeting oversight, valuations, investor reporting and assisting with disposition activity.

Mygatt brings more than 16 years of direct multifamily property management, financial analysis and marketing experience to CRC. During her time with Johnson Development Associates (JDA), a regional multifamily development company, she managed a team that performed all asset management functions and oversight of third-party operations for a 3,000-unit portfolio. Prior to her time at JDA, Mygatt was with AvalonBay Communities for nearly a decade serving various roles in operations, financial analysis and portfolio management.

Mygatt earned a Bachelor of Arts degree in Economics from Washington and Lee University and also studied economics at The London School of Economics and Political Science.

“We are thrilled to have somebody with Elisabeth’s asset management and operational background on board to help lead and grow the team,” stated Haley Donato, CRC’s Vice President of Asset Management and Finance. “She has institutional asset management experience coupled with experience leading a team at a smaller, more entrepreneurial firm. I know she will bring fresh perspectives and find new ways to add value across our portfolio.”

Baltimore-based real estate investment and management company Continental Realty Corporation (CRC) has purchased its seventh multifamily community in North Carolina with the recent $36.5 million acquisition of 800 St. Marys Apartments, located at 800 St. Marys Street in the Glenwood South neighborhood of downtown Raleigh. Developed in 2020 by Selwyn Property Group and Southeast Apartment Investors, the 65-unit community of four-story elevator-serviced building and townhomes with attached garages was 95 percent leased at the time of this off-market transaction. Dean Smith of Newmark represented the seller.  Adam Randall and John Westby-Gibson of Newmark provided services to procure the financing through a loan with the Federal Home Loan Mortgage Corporation (Freddie Mac).

This is the first asset purchased on behalf of Core Multifamily Fund, LP, private equity fund sponsored by CRC, in partnership with Brown Advisory, a global private and independent investment and strategic advisory firm also headquartered in Baltimore. The Core Multifamily Fund recently completed its initial Founders Investor Closing, raising approximately $145 million.  The fund was formed to identify and acquire Class “A” garden and mid-rise communities located in the southeastern United States, with top-quality finishes and amenities, with a focus on stabilized or near-stabilized opportunities. Through its various funds, CRC has acquired approximately $1.2 billion worth of retail and multifamily assets in the last ten years. In total, CRC owns and self-manages roughly $3.2 billion in real estate nationally, with heavy concentration in the Southeast.

At 65-units, this boutique product integrates well into Continental’s existing portfolio. 800 Saint Marys is located just 0.2 miles from the nearest CRC asset. With this acquisition, CRC now owns and self-manages more than 1,300 apartment units in North Carolina, with four multifamily communities in the Raleigh area, including The Edison Lofts, St. Mary’s Square, The Village Apartments and 800 St. Marys Apartments. Additional assets include The Flats at Ballantyne and Park & Kingston located in Charlotte and The Reserve at Mayfaire in Wilmington.

One- and two-bedroom units are among the largest within the Glenwood South submarket

Delivered in 2020, 800 St. Marys Apartments is in Raleigh’s Glenwood South district and consists of one-, two- and three-bedroom floorplans ranging from 963 to 1,666 square feet of space, with an average unit size of 1,224 square feet of space. The 19 one-bedroom units, measuring 963 square feet of space, are approximately 25 percent larger than comparable product in the submarket, and the 42 two-bedroom units, at 1,283 square feet of space, are 10 percent larger than the competitive set. The four three-bedroom townhome-style units with direct-entry two-car garages consist of 1,666 square feet of space.

Each unit features 10-foot ceilings, a stainless-steel appliance package, quartz countertops, soft-close kitchen cabinetry, kitchen islands with bar top seating, extra large closets and walnut plank flooring. Existing community amenities include an outdoor terrace with summer kitchen area, fire pit with seating, a state-of-the-art fitness center,  a clubhouse equipped with flat screen televisions, wine lockers, and a complimentary coffee bar, a business lounge with private conference center,  and a controlled-access parking garage.

Nearby retail, entertainment and cultural options

Situated two blocks off Glenwood Avenue, 800 St. Marys Apartments features quick access to Glenwood South’s retail and entertainment, such as Cameron Village, Harris Teeter, and Publix Supermarket. Also nearby are North Carolina State University and William Peace University, Yates Mill Park and William B. Umstead Park. Downtown Raleigh is less than two miles away and Raleigh-Durham International Airport can be accessed in less than 15 minutes.

“800 St. Marys Apartments is an institutional-quality asset and we were drawn by its irreplaceable location, expansive floorplans and best-in-class finishes and amenity package,” stated Ari Abramson, CRC’s Vice President of Acquisitions. “CRC is the natural buyer for this asset, given our existing three multifamily communities in the Raleigh market, including St. Mary’s Square. This provides our team the opportunity to scale operations between the two properties to realize cost efficiencies, and to expand the breadth of amenities to 800 St. Marys residents by providing access to St. Mary’s Square amenities including its rooftop pool.”

CRC acquired the 134-unit St. Mary’s Square in 2018 and completed a $1.2 million renovation in 2021, improving the asset’s common areas and amenity spaces.

Sustained vibrancy and growth of Raleigh

“Our team has a deep understanding of the key growth drivers, population trends, and market conditions through the Southeast markets. We have been focused on these markets for decades,  which gives our acquisition and management platform scale and expertise” stated JM Schapiro, CRC’s CEO. “As multifamily real estate performance strongly correlates with population and job growth, the fundamentals of Raleigh are exceptional and 800 St. Marys is great real estate. With the long-term investment profile of the Core Multifamily Fund, this is a perfect first deal for this fund.” Schapiro added.

The population of Greater Raleigh grew nearly 3.3 percent over the past year and now stands at nearly 1.6 million people. Major employers in the region include Red Hat, Duke Energy, Wells Fargo, Deloitte, KPMG and Citrix.

According to information published by Wake County Economic Development, GoBanking Rates named Raleigh the number one city to live in for young professionals, based on affordability and the strength of the local labor force, and The Triangle area (Raleigh-Durham-Chapel Hill) is considered the second-fastest growing tech hub, with more than 4,000 tech companies employing more than 60,000 workers. The region, with approximately 600 life science companies, is considered the fifth-largest life sciences hub in the country.

Overview of $144 million Core Multifamily Fund

Core Multifamily Fund, CRC’s seventh fund, is focused on acquiring newly-developed properties constructed between 2018 and 2022 in high-growth suburban and urban markets throughout the Southeast, including Charleston, Charlotte, Nashville, Raleigh, Orlando and Tampa.

“Given our deep understanding of the Southeast markets and current market conditions, especially the job and population growth in the Southeast, our vertically integrated team believes this is the optimal time to invest in a core multifamily strategy for long-term holds,” said Schapiro. “Multifamily real estate performance correlates positively with population and job growth, and by investing in high-growth markets, this fund will benefit from submarket growth that is stronger than the national average.”

Continental Realty Corporation (CRC), a Baltimore-based real estate investment and management company, has completed the sale of Riverstone at Owings Mills, a residential community consisting of 324 multifamily units in Owings Mills, Maryland, for $92.9 million. Situated just outside of Interstate 695 in the northwest section of Baltimore County, the asset was acquired by Carter Funds. CRC was represented by Christine Espenshade and Robert Garrish of Newmark in this sales transaction. This is the second multifamily sale in the region for CRC in the last quarter. In July, CRC sold the 189-unit 101 North Ripley Apartments in Alexandria, Virginia for $50.1 million.

Riverstone at Owings Mills was acquired in 2016 on behalf of CRC Fund IV, for $61.6 million. CRC purchased the property for $190,000 per unit and disposed the asset for $287,000 per unit.

Riverstone at Owings Mills is located at 4700 Riverstone Drive and is adjacent to the Owings Mills Town Center as well as several major business communities and lifestyle centers. Interstate 795, a major highway serving the northwest corridor of Baltimore County, is less than one mile away and Towson is approximately 15 miles from the community. During its hold period, CRC added significant value with the execution of in-unit improvements and a full renovation of community amenities, including the fitness center, clubhouse, leasing office, pool deck and several exterior amenities.  

Since CRC acquired Riverstone at Owings Mills in 2016, the Owings Mills submarket has been reshaped with the investment of several billion dollars of development activity. Notable nearby developments include the transformation of Owings Mills Mall into Mill Station, an open-air shopping venue, the construction of lifestyle center Foundry Row, the continued development of Owings Mills Metro Centre, a Transit-Oriented Development and the renovation of several neighborhood shopping centers. As a result of these recent developments, the submarket has benefited from new high-profile retailers such as Wegmans Food Markets, Costco, Lowe’s Home Improvement and a variety of regional and national restaurants. The developments added more than 1.2 million square feet of commercial office space, 1.2 million square feet of retail space and 1,700 Class “A” luxury apartment units, as well as a full-service hotel and conference center.

“I could not be more proud of our team’s efforts and outcomes in this investment,” stated JM Schapiro, CEO of Continental Realty Corporation. “Riverstone’s value story is a tremendous combination of asset-level improvements and sub-market advancement. Being a Baltimore-based real estate company, we knew this asset extremely well and visited it frequently. It was incredible to watch the evolution of the property and submarket during our hold period. Riverstone was a great investment for CRC Fund IV and we believe that this market has continued runway for additional expansion and growth. Riverstone serves as another great example of CRC’s team adding value for both the resident and the investor.”

Headquartered in Baltimore, Maryland and founded in 1960, CRC is a full-service commercial real estate and investment company focused on acquiring and operating retail and multifamily properties. The privately held firm owns and manages a diversified portfolio of retail centers consisting of more than six million square feet of commercial space and approximately 9,000 apartment homes across ten states, with a portfolio value exceeding $3.2 billion. For additional information, visit www.crcrealty.com.

Continental Realty Corporation (“CRC”),a real estate investment and management company, in partnership with Brown Advisory, a global private and independent investment management and strategic advisory firm, have announced the closing of Core Multifamily Fund, LP (the “Partnership”), for which approximately $146 million in private equity funds were raised. Since 2012, CRC has raised $850 million in equity across five real estate funds focused on multifamily and retail investments. Through the various funds, CRC has acquired approximately $1.5 billion worth of retail and multifamily assets. Approximately 70% of the $850 million raised has been placed, with another 10% of equity allocated to deals currently under contract.

CRC owns and manages a diversified portfolio of over 9,000 apartment homes, as well as retail centers and other commercial properties consisting of more than six million square feet of commercial space across ten states, with a portfolio value exceeding $3.2 billion. The Partnership is an open-ended fund that was formed to create a long-term vehicle for core multifamily investment and will acquire a diversified, high-quality portfolio of income-generating multifamily properties located in high-growth Southeastern US markets.

“The Core Multifamily Fund provides our team ongoing capacity to acquire newly constructed Class A assets in the Southeast region of the country where we have been investing since 1996,” explained JM Schapiro, CEO of CRC. “Given our deep understanding of the Southeast markets and current market conditions, especially the job and population growth in the Southeast, our vertically integrated team believes this is the optimal time to invest in a core multifamily strategy for long-term holds. Continental Realty and Brown Advisory have a nearly 30-year track record together and we are grateful for this important strategic relationship.”

Target characteristics for multifamily assets in this fund include Class A garden and mid-rise communities built within the past four years, with a focus on stabilized or near-stabilized opportunities. The Partnership will target well-constructed properties with top-quality finishes and amenities throughout Southeast suburban and urban submarkets.

“Multifamily real estate performance correlates positively with population and job growth, and by investing in high-growth markets, properties acquired by this fund could benefit from submarket growth that is stronger than the national average,” stated Ari Abramson, CRC’s Vice President of Acquisitions. “We believe multifamily properties benefit from attractive long-term supply/demand dynamics, and current multifamily fundamentals are strong. Historically, real estate has outperformed public equities and fixed income during periods of rising inflation. Most investments will be capitalized with long-term fixed rate debt. CRC has deep relationships within the lending community and is a Fannie Mae and Freddie Mac Preferred Borrower as well as a HUD-approved borrower.”    

Abramson adds that his acquisitions team has a long history of investing in the core multifamily asset class. Since 2017, CRC has acquired 3,200 multifamily units. This includes more than 1,000 units of newly developed and best-in-class properties through five off-market transactions located in Raleigh, Charlotte, and Charleston. These properties include Edison Lofts and St. Mary’s Square in Raleigh, The Flats at Ballantyne and Park & Kingston in Charlotte and Central Island Square in Charleston. CRC expects to buy similar properties through this Partnership.

Continental Realty Corporation (CRC), a Baltimore-based real estate investment and management company, has completed the sale of 101 North Ripley Apartments, a residential community consisting of 189 multifamily units in Alexandria, Virginia, for $50.1 million. Situated near the intersection of VA Routes 236 (Duke Street) and 401 in the Washington, D.C./Interstate 395 corridor, the asset was acquired by Willow Creek Partners, a D.C.-based real estate investment and management firm. CRC was represented by CBRE, led by Bill Roohan, Robert Dean and Jonathan Greenberg.

101 North Ripley Apartments, formerly known as Parkwood Court, was acquired in 2011 on behalf of CRC Fund III General Partner, LLC for $23 million. CRC purchased the property for $121,000 per unit and disposed the asset for $265,000 per unit.

Offering seven different floorplans among one-, two- and three-bedroom designs, 101 North Ripley Apartments is within close proximity to Old Town, Virginia and less than 10 minutes from Washington, D.C. Several years after acquiring the asset, CRC completed an extensive property improvement program that focused on the installation of new windows and sliding patio doors, renovation of common-area hallways and laundry rooms, and conversion of an under-utilized outdoor pool into a new parking lot with 45 residential parking spaces.

In recent years, several high-profile development projects have been initiated in the Northern Virginia region which has elevated the submarket. Amazon’s HQ2 was announced in 2018 and is expected to bring 25,000 new jobs to the area in near future. In late 2021, it was announced that Landmark Mall, less than one mile from the site, is set to be transformed into a 51-acre state-of-the-art medical campus to include townhomes, senior living facilities, retail space and a new transit hub offering connections throughout the area.

“Our team executed a great, value-add strategy at Ripley,” stated JM Schapiro, CEO of Continental Realty Corporation. “We repositioned the asset into a high-quality, yet affordable housing option within a growing submarket. Our team elevated many of property’s physical elements and improved the resident experience with modern property management tools and a customer-first approach. 101 North Ripley serves as another great example of CRC’s team adding value for both the resident and the investor.”