September 2013

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    30

Why Ram is So Aggressive in Charlotte Multifamily

September 30, 2013

By Jennifer LeClaire, via GlobeSt.com

CHARLOTTE—Ram is sold on Charlotte. That’s why the company keeps making investments there. Ram Realty Partners III (RRP III), an affiliate of south Florida-based Ram, has announced an equity investment in a joint venture to develop The Crest at Midtown in Charlotte. The deal marks the fourth investment in Charlotte since opening its South End office in 2011.

Lennar Apartment Communities is developing the project. The 261-unit luxury mid-rise multifamily community is located on a South Kings Drive infill site in the Midtown submarket, across from the Metropolitan.

“We are aggressively expanding Ram’s presence and portfolio in the region, particularly with multifamily opportunities,” says Casey Cummings, CEO of Ram. “The Crest at Midtown investment is compelling for two reasons: First, the location is unparalleled in Charlotte. Second, we have known the senior team at Lennar Apartment Communities for more than 15 years and are looking forward to working with them on this and other exciting opportunities in the market.”

Ram’s third investment fund is pursuing value-add retail and multifamily opportunities, as well as participating in equity joint ventures with solid development partners. Though this is the first joint venture investment in RRP III, Ram has been executing deals and investing with partners since 1996.

The Crest at Midtown investment is the second recent transaction for Ram in the Charlotte market. In 2012, an affiliate of RRPIII acquired Piper Station, a 212-unit luxury multifamily community in Ballantyne. Earlier this year, the company acquired an adjacent seven-acre parcel where it will develop an additional 112 units.

“Ram is a knowledgeable and talented investor in projects such as this, and are known for their integrity and professionalism,” says Todd Farrell, regional president of Lennar. “While we at Lennar look to expand our national platform, our relationship with Ram will certainly grow in scale. The Crest at Midtown represents the first of those efforts, and we look forward to its success.”

Ram, which owns the Design Center of the Carolinas, is aggressively investing in Charlotte, both acquiring existing multifamily properties and developing new product. One of the most notable pieces of land Ram acquired is adjacent to the Design Center. The Crest at Midtown is the seventh investment made by RRP III and brings the total asset value to the $200 million mark.

  • Sep
    24

Ram invests in Lennar’s midtown apartment project

September 24, 2013

By Will Boye, via Charlotte Business Journal

An update to an article we posted last week: Lennar Multifamily Investors has an investment partner for the midtown apartment complex it’s building near the Metropolitan as well as a name for the 261-unit complex.

Ram, the Florida real estate firm that owns the Design Center of the Carolinas, has made an equity investment in a joint venture with Lennar to develop the $45 million project, called The Crest at Midtown.

Ram made the investment through an affiliate called Ram Realty Partners III, the private-equity real estate fund that also acquired Piper Station, a south Charlotte apartment community where Ram plans to build 120 additional units.

Ram CEO Casey Cummings says the firm has known the senior team at Lennar’s apartment division for more than 15 years and calls the location of The Crest at Midtown “unparalleled in Charlotte.”

“While we at Lennar look to expand our national platform, our relationship with Ram will certainly grow in scale,” says Todd Farrell, a regional president with Lennar’s multifamily division. “The Crest at Midtown represents the first of those efforts, and we look forward to its success.”

The size of Ram’s investment in The Crest at Midtown was not disclosed, but in January, when Lennar first discussed its foray into the apartment space, executives said the capitalization structure for its multifamily projects would consist of approximately 30% equity and 70% debt, with Lennar investing up to 25% of the required equity, or 7.5% of the total development cost, and tapping institutional investors for the balance.

Lennar has previously teamed with institutional investors such as Prudential Real Estate Investors and The Carlyle Group on apartment projects in Georgia and Florida.