Major overhaul of Plaza Midwood townhouse community to follow recent acquisition
Originally published by the Charlotte Business Journal. View original article here.
A townhouse community with 19 separate owners was recently sold to an investment firm, which will put significant capital into renovating the property before reselling the units.
Plaza Midwood Village LLC, affiliated with Element Development out of Miami, acquired Briar Creek Place Townhomes in 20 separate transactions, according to Mecklenburg County real estate records. Individual townhouses, on average, sold in the upper $100,000 range. The property includes 23 duplex buildings with 46 units total.
Element plans to invest up to $3 million in interior and exterior renovations, according to Javier Lluch, managing partner at Element Development. He said the units will include changes to the exteriors, like new roofs and hardiplank siding, and full interior renovations, with features like open floorplans, quartz countertops, porcelain tile and "top-of-the-line" appliances, he said.
Price points for the refurbished townhouses are projected to be between $200,000 and $300,000.
"This would be an ideal first buy for a millennial who’s looking to buy a house but can’t afford a downpayment in (another type of) home," Lluch said. He continued, saying a mortgage at one of the townhouses might be $1,100 or $1,200 a month compared to $1,400-plus per month to rent a two-bedroom apartment in the Plaza Midwood area.
The property is near the intersection of Central Avenue and Briar Creek Road, behind The Vyne on Central apartments. The community is within the Commonwealth Park neighborhood, east of Plaza Midwood. Lluch said the townhouse community will be rebranded as Midwood Village.
Rehab will begin next month on 10 units, with those homes hitting the market in about three months, he said. The property will be renovated and sold in subsequent phases, with existing tenants at the property relocating within the community during construction. Savvy & Co. will handle sales for the finished units at Midwood Village.
This is the first investment in Charlotte for Element Development, Lluch said. The firm has previously worked in Asheville, but most of its projects — primarily acquisitions and rehabs — have been in Florida.
"We’re looking into value-add opportunities in Charlotte ... mostly for-sale, not for-rent," Lluch said.
He said he became aware of the Briar Creek property after a meeting with Charlotte real estate firm RED Partners. The property had previously been under contract to a buyer who planned to rezone it, Lluch said, but that deal ultimately fell through. Element Development, which didn't seek rezoning, went under contract on the property shortly thereafter and closed on March 23.
Chris Turner and Craig Carlisle at RED Partners represented Element Development in the sale. D4 Construction is the general contractor. RSE Capital Partners is the senior lender on the project.