Madison Woods Apartments Sold & Terrace Properties Refinanced
VIRGINIA BEACH VA, JULY 14, 2023 – Featherstone Partners, through affiliated entities, has successfully sold Madison Woods Apartments and completed the refinancing of Terrace Oaks and Terrace at Olde Battleground. All three properties are located in Greensboro, NC. The 456-unit portfolio was initially acquired in a transaction facilitated by Hunter Bowling and Paul Marley of Cushman & Wakefield for $49.25M. Cushman & Wakefield also represented the buyer & seller in the $26M sale transaction of Madison Woods. Terrace Oaks and Terrace at Olde Battleground were refinanced using fixed-rate agency debt originated by Greystone at a valuation of $42.3M. Featherstone was able to successfully exit the existing floating-rate debt (funded at acquisition by affiliates of Benefit Street Partners) that was used to acquire and improve the property, by executing all three transactions simultaneously. “Exiting the portfolio’s existing debt all at once by way of three separate transactions was tricky due to the current capital markets environment,” Chuck Patty, CEO and founder of Featherstone Partners reflected, “having a thorough understanding of the mechanics that went into each step, along with having great partners like M Group, made all the difference.”
Madison Woods was sold at a 4.6% cap rate which reflects a 1.81x equity multiple and a 23.25% IRR. The sale marks Featherstone’s second exit in their current portfolio. The refinancing of Terrace Oaks and Terrace at Olde Battleground allows for significant interest rate risk hedging and boosts projected cash flow.
Featherstone and its partners intend to continue repositioning the Terrace properties by upgrading remaining classic unit interiors and continuing to improve exteriors.
About Featherstone Partners
Featherstone Partners is a privately owned commercial real estate investment firm located in Virginia Beach, Virginia which focuses on investment real estate in the Southeast and Mid-Atlantic regions. With over 70 years of combined real estate experience, Featherstone Partners has an extensive depth of industry knowledge and a wide network of relationships. The company acquires assets in high-growth markets with strong in-place cash flows and up-side opportunity. Featherstone Partners utilizes its industry relationships with both agency and private lenders as well as institutional, family office, and high net worth investors to offer diversified investment opportunities with above market returns.