A residential real estate investor has expanded its footprint in the Triangle with the purchase of an apartment community in Durham.
Montebello, New York-based Dasmen Residential paid $29.5 million earlier this month for The Forest, a 272-unit multifamily community. The apartments are situated on 19 acres at 800 White Pine Drive in Durham by Duke Forest and down the road from the intersection of U.S. Highway 501 and N.C. 147.
Dasmen bought the property from the Sterling Group, a real estate investor with properties around the country.
“Dasmen is pleased with our most recent acquisition of The Forest, our eighth asset in the Raleigh-Durham market,” says CEO Michael Katz. “Our plan is to enhance the living experience for the current and future residents as we look to implement an extensive renovation to the interior units and common areas.”
Planned renovations include installing quartz countertops for the apartment interiors, as well as a “Dasmen Resort-like experience for the clubhouse, pool, business center and fitness center.”
Apartments.com puts rental rates at The Forest between $770 for a one-bedroom unit and up to $999 for a two-bedroom unit.
Cushman & Wakefield’s Watson Bryant, Jordan McCarley and Paul Marley represented seller.
“The Forest sits in a prime location in Durham just minutes from major Triangle job hubs,” says Bryant. “New ownership has the opportunity to tap into the affluent renter base in the area and expand upon an in-place, value-add initiative in order to grow rental income.”
Dasmen has been involved in multiple apartment transactions in the Triangle in recent years. In late 2017, subsidiaries of Dasmen bought what’s now the Averelle North Hills apartments for $25.6 million. The 27 acre property is located off Ridgewood Drive.
In June of 2018, Dasmen bought the Emerald Forest Apartments in Durham for $33.75 million.
Apartment rental rates in the Triangle saw a 6.5 percent growth rate over the past 12 months, according to the latest report by ApartmentData.com, bringing average rates to $1,165 per month and $1.20 per square foot. Occupancy rates have reached 92.4 percent, with around 4,100 units absorbed over the past 12 months.
Just 3,100 new units opened in the same period of time.