Chicago, IL (July 8, 2019) – Pearlmark, in partnership with MLA Properties, closed on the acquisition of Pavilion Village, a 2015-vintage, 294-unit apartment complex located in Charlotte, NC. The property, currently 93.2% occupied, is located 3-miles east of UNC Charlotte and 13-miles northeast of Uptown Charlotte. Pavilion Village benefits from its proximity to public transportation via the LYNX Blue Line, growing employment nodes including the university and the Atrium hospital system, and access to regional amenities including the PNC Music Pavilion and the Charlotte Motor Speedway.
Pearlmark and MLA believe that Charlotte will continue to benefit from its nationally recognized status as a low-cost regional financial hub and remain a top location for both financial and technology orientated employers looking to reduce costs (relative to gateway cities), as well as attract and retain talent. The market has outperformed the nation across important demographic indicators such as population growth, job growth, and unemployment, while both rent growth and investment sales volumes have been strong.
Pearlmark and MLA Properties plan to implement both interior and exterior improvements focused on enhancing the tenant experience with the goal of positioning the asset as a best-in-class property within its competitive set. Drucker + Falk will serve as property manager with a goal of adding value via its blue-chip property management capabilities, culture, and leadership to increase rental rates and occupancy.
“MLA is excited about the opportunity to partner with Pearlmark, and we believe this property is well positioned for rental growth with close access to transportation, education, and major employment hubs. We are confident that Drucker + Falk’s management team will help us drive superior risk adjusted returns for our investors.” said Michael Cohan, Managing Director of MLA Properties.
Mort Klaus, President for MLA Properties, also commented, “We look forward to a very successful partnership with Pearlmark and continuing to expand our footprint in the Carolinas.”
Christopher Mendez, lead executive on the transaction for Pearlmark stated, “Pearlmark looks forward to working together in partnership with MLA and Drucker + Falk to pair a reenergized and enhanced property management function with capital improvements to drive occupancy and rental rates, ultimately providing an attractive community and experience for our tenants and value and strong returns for our investors.”
Stephen Quazzo, CEO for Pearlmark, also commented, “We believe in the long term growth of the Charlotte market. Pearlmark has successfully owned multifamily there in the past and we are eager to do more with great, aligned partners. Pavilion Village is a high quality asset and we look forward to working with MLA on the opportunity to enhance value.”
Pearlmark is a Chicago-based investment firm that targets domestic core to value-add real estate opportunities via commingled funds, separate accounts, and joint venture structures. Since 1996, Pearlmark has sponsored more than a dozen real estate equity and debt investment programs and completed 543 real estate equity and debt transactions on behalf of investors, representing nearly $5.0 billion in equity capital commitments and more than $13.3 billion in gross investment value. Pearlmark has invested in approximately 57,000 apartment and residential units in major metropolitan areas across the U.S., comprised of $1.1 billion of multifamily acquisitions and more than $300 million of multifamily mezzanine debt investments. Pearlmark is dedicated to creating value for its investors and offers a range of investment opportunities across the various property types (office, industrial, multifamily) in both local and national markets.
MLA Properties, established by the Klaus family in 2014, is a real estate family office investing in residential and commercial real estate throughout the United States. The firm has more than $600,000,000 in assets under management, including multi-family, retail and office. MLA’s current investment strategy focuses on core plus and value add garden-style multifamily investments in non-gateway markets. For more information, please visit https://mlaprop.com.