Carter Exchange Delivers 55% Total Return on North Carolina Multifamily Sale
Carter Exchange Fund Management Company LLC, a real estate firm focused on tax-advantaged investment strategies, has announced the sale of Retreat at the Park, a garden-style apartment community located in Burlington, N.C., between Greensboro and Raleigh-Durham.
The property was held in CX Retreat at the Park, DST, a Delaware statutory trust offering that launched in July 2020 and raised nearly $18.71 million from accredited investors.
Carter Exchange sold the property in January for $48 million, generating a 55.4% total return to investors. The company said total return represents the ratio of total sales proceeds and distributions through the life of the investment to the initial equity invested, net of fees.
During Carter Exchange’s 5.75-year hold, average monthly rents on occupied units increased by 20.1%, and the average occupancy rate was 95.5%.
The property was built in 2015 and consists of 249 apartment units across 11 residential buildings. Community amenities include a clubhouse with a game room and lounge area, cybercafé, fitness center, resort-style saltwater pool, outdoor entertainment fireplace, and other amenities.
To drive value, Carter Exchange’s in-house property management affiliate, Allegiant-Carter Management, implemented apartment home upgrades, including upgraded flooring and the installation of new washers/dryers, generating a 37.7% return on invested capital.
“The sale of Retreat at the Park demonstrates the effectiveness of our acquisition strategy and in-house management capabilities,” said Dallas Whitaker, chief executive officer of Carter Exchange. “The Burlington metro area has experienced meaningful population growth – 12.9% since 2010 – driven by its central proximity to larger employment.”
“This dynamic has positioned the market as an attractive, more affordable residential alternative. Successful execution of our business plan resulted in a highly marketable asset and a strong outcome for our investors,” added Whitaker.
According to the company, the transaction provided liquidity to investors and the opportunity to reinvest sale proceeds through a subsequent tax-deferred exchange.
Carter Exchange specializes in tax-deferred private placement investments. Currently, the firm manages a portfolio of more than $2.05 billion across multiple asset classes in 10 states, while the broader Carter Funds platform totals $4.3 billion in assets under management, including multifamily, industrial, and data center real estate.
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