October 29, 2019

CRC Acquires 360-Unit The Bluestone Apartments Near Hilton Head, SC

The Bluestone Apartments bluffton south carolina

CRC has announced the acquisition of The Bluestone Apartments, a 360-unit multifamily community located at 4921 Bluffton Parkway in Bluffton, South Carolina for $69.3 million. The asset was purchased from a joint venture between The Carlyle Group and Blaze Partners. This represents CRC’s second multifamily investment in South Carolina, joining Avana at Carolina Point in Greenville, and third overall investment in the state with the acquisition of West Ashley Shoppes in Charleston.

The asset was acquired on behalf of Continental Realty Fund V, L.P. a $210.8 million private equity fund focused on the acquisition of value-add retail and multifamily properties in the Mid-Atlantic and Southeast regions of the country. The Bluestone is the sixth asset acquired by the fund and the second multifamily investment following The Village Apartments in Raleigh, North Carolina.

The Bluestone, constructed in 2004 and 2007, is located approximately six miles from Hilton Head Island and along the highly trafficked Bluffton Parkway, the primary east-west thoroughfare.  The property is the closest Class “B” community to Hilton Head Island which gives the property a distinct competitive advantage over comparable communities with longer drive times. It is also within close proximity to Old Town Bluffton’s retail and entertainment corridor, offering convenient access to shops, daily services, and cultural amenities.  The Hilton Head MSA has benefitted from population growth fueled by a healthy diverse economy and quality of life.  The MSA has experienced more than $500 million of investment in developments over the last three years including the regional airport extension which is expected to expand flight service to the Island by over 200% with new airliner services and additional direct flights.

More than 30,000 people reside within a five-mile radius of the community with a median household income exceeding $60,000. Overall, the multifamily occupancy rate in the greater Bluffton submarket exceeds 95% and the fundamentals will continue to remain strong.

“The Bluestone fulfills our operational and location acquisition criteria and, given the strong value-add opportunities presented by this asset, it represents the ideal property for our second investment in the South Carolina residential marketplace,” stated Ari Abramson, Vice President of Acquisitions at CRC. “The property’s placement within close proximity to a popular coastal resort town positions The Bluestone as an attractive and lower-cost living alternative and the immediate area also includes a stable yet rapidly-expanding employment base. High barriers to entry and relatively few new construction projects underway or on the horizon will help assure continuing high occupancy rates and positive resident retention.\We look forward to upgrading the property and executing our value-add plan.”

“The Bluestone boasts an on-site lake and wooded areas for the residents to enjoy which is a great amenity and the floor plans offer space up to 1,510 square feet which is well-suited for all lifestyles,” stated Scott Hamlin, Vice President of Multifamily at CRC.  “Residents are welcomed by large open-style floor plans that feature nine-foot tray ceilings, large balconies, walk-in closets, ceiling fans, and a breakfast bar. Additional on-site garages and storage offer even more convenience for them. Residents also have access to a wide array of community amenities including a clubhouse with a state-of-the-art fitness center, Internet cafe and two swimming pools with outdoor kitchens. Outdoor gaming areas, a fireplace lounge, grilling area, fishing pier, and a dog park are also offered.”

According to an article that appeared last year in Urban Land Magazine, the recognized Hilton Head-Bluffton-Beaufort residential submarket was “among the top two highest-performing metro areas” in the State of South Carolina, a fact attributed to its placement within a coastal metro area and the continuing strength of consumer tourism.

With this acquisition, CRC now owns and manages multifamily communities throughout Florida, Georgia, Maryland, North Carolina, South Carolina, Tennessee, and Virginia.

About CRC
Continental Realty Corporation (CRC), is focused on acquiring value-add retail and multifamily properties, located throughout the Mid-Atlantic and Southeast regions of the United States. Headquartered in Baltimore and founded in 1960, CRC is a full-service commercial real estate and investment company. The privately-owned firm owns and manages a diversified portfolio of retail centers, consisting of over 4.5 million square feet of commercial space, as well as almost 10,000 apartment homes. Positioned throughout the Mid-Atlantic and Southeast regions, the portfolio’s value exceeds $2 billion.

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