Covenant Capital Group announced Thursday afternoon the $5.6 million acquisition of Timbers Apartments in Spartanburg, S.C.
Nashville-based Covenant, a real estate private equity firm specializing in the acquisition and redevelopment of apartment communities, used its Covenant Apartment Fund VII for the purchase. The fund, which will continue to target additional apartment communities, obtained a $4.3 million mortgage provided by Fannie Mae. This was the fund's first acquisition.
“The fund was able to acquire Timbers, a well located lender‐owned asset, for well under 50 percent of replacement cost,” Jeff Seiters, Covenant senior vice president, said in a release.
“The special servicer had successfully stabilized the foreclosed property, creating an excellent opportunity for Covenant to execute its value‐added investment strategy, while maintaining a very attractive all‐in basis,” he added.
Covenant Capital Group was formed in 2001 and has assets under management of more than $459 million from institutional and high net worth investors. Covenant manages five funds with a total portfolio value of more than $1.3 billion invested in apartment communities throughout the United States controlling approximately 19,500 apartment units.