A Philadelphia apartment developer has expanded its presence in downtown Winston-Salem by spending $15.5 million to buy the 757 North apartment community.
The buyer of the complex at 757 N. Chestnut St. is an affiliate of PMC Property Group, according to a Forsyth County Register of Deeds filing Thursday.
The seller was an affiliate of Laurel Street Residential LLC of Charlotte. The sale was completed Feb. 8 and PMC has retained the 757 North name.
PMC is also the developer of the 130 luxury rental residential units within The Residences at the R.J. Reynolds Building. Those units went debuted in March 2016.
The PMC affiliate, 757 North Chestnut Street Associates LLC, spent about $500,000 more for the four-story property than its projected construction cost.
PMC officials could not be immediately reached for comment on its purchase.
The complex, which is adjacent to Wake Forest Innovation Quarter, opened in July 2017.
757 North was developed by Laurel Street in partnership with Goler Community Development Corp., a Winston-Salem nonprofit specializing in the redevelopment of the Goler Heights neighborhood.
The community offers 115 units featuring one-bedroom and two-bedroom apartments, with the majority of them renting for $1,095 to $1,600 a month.
However, 25 percent of the overall units will be reserved for households with incomes at 80 percent of the area median income. Those rents will range from $740 to $850 a month.
“I’m happy to see that this large investor has deemed our downtown as a viable place for further investment,” said Jason Thiel, president of Downtown Winston-Salem Partnership. “It’s a good sign for additional growth.”
Northridge Capital, a real-estate investment firm, provided $4 million in equity toward the 757 North project. The development team secured $9.4 million in construction financing from F.N.B. Corp., which inherited the project as part of buying Yadkin Financial Corp. in 2017.
The city of Winston-Salem also provided a $1.25 million loan and $325,000 land grant toward the project. The money for the loan came from funds approved by voters in 2014 for housing and neighborhood development.
“757 North is the perfect example of the power of collaboration and partnering between both nonprofit and for-profit organizations while being supported by local government to ensure that all our citizens have the opportunity to experience our revitalized downtown community,” Goler president Michael Suggs said in June 2017.
Jon Lowder, president of Piedmont Triad Apartment Association, said the sale is “not surprising from my point of view.”
“We continue to see firms from outside the region investing in properties in the Piedmont Triad because the fundamentals here are very strong.
“Firms are turning to secondary and tertiary markets like ours in search of returns they are finding more difficult to achieve in the larger/primary markets,” Lowder said.
By comparison, PMC paid $7.8 million in June 2014 for the iconic former R.J. Reynolds Tobacco Co. headquarters building.
PMC said it would spend $60 million overall to convert it into a mixed-use building that includes The Kimpton Cardinal, which has 174 guest rooms and 35 suites on six floors.
One-bedroom units contain 700 square feet, while two-bedroom units have between 830 to 1,000 square feet. There are 20 units each on floors seven through 10, and six units each on floors 11 through 19 of the main tower.
About 65 percent of the units are one bedroom and 35 percent two bedrooms. Monthly rent starts at $995 for a one-bedroom unit and average $1,385 for a two-bedroom unit.