PGP acquires Liberty Crossing Apartments for $13.35 mln

Chapel Hill, North Carolina-based Prudent Growth Partners, a private equity real estate firm, has acquired Jacksonville, North Carolina-based Liberty Crossing Apartments. The price of the acquisition was $13.35 million.



Prudent Growth Partners, LLC, a Chapel Hill, NC based Private Equity Real Estate Firm, has purchased the Liberty Crossing Apartments in Jacksonville, NC.

The $13,350,000, 286-unit transaction was completed as part of a 1031 exchange involving three buying entities – all sponsored by PGP – using a Tenancy-in-Common arrangement.

“We are thrilled with this purchase, our largest deal to date. It is a great community and we are looking forward to improving it through a variety of value-add initiatives,” said Tom Hahn, President of Prudent Growth Partners, LLC. “This deal was also a great opportunity to use our expertise in arranging 1031 exchanges to help investors from two of our recent sales trade into this larger asset while deferring any capital gains taxes they otherwise would have had to pay.”

“Our ability to organize a three-way TIC structure – which enabled us to bring in new investors while also completing two separate 1031 exchanges – really made this deal possible,” said David Miller, Executive Vice President and General Counsel of PGP.

Prudent Growth Partners, based in Chapel Hill, NC, is focused on acquiring garden style apartment communities, typically with 100 to 300 units, as well as neighborhood retail centers and office buildings. “We look for properties that are well managed, well positioned, and which provide some nice upside for our investors over the long term,” said Hahn.

Prudent Growth Partners has a growing network of accredited investors who participate in each transaction. “All of our transactions are structured to provide solid cash flows each quarter – typically at least an 8% annualized return – as well as long-term upside through the appreciation of the property,” said Hahn. “It is a completely passive investment for the investor and provides great returns and a nice hedge against future inflation,”

Prudent Growth Partners, LLC is a private equity real estate investment company based in Chapel Hill, NC. PGP’s focus is on properties that tend to be overlooked by larger institutions and which provide exceptional returns on invested capital along with the possibility of longer-term capital gains achieved by expert management and future price appreciation.