PEM Has Acquired Ashley Village

PEM is pleased to announce its closing on the acquisition of Ashley Village Townhomes, a 260-unit class B apartment community in North Charleston, South Carolina. PEM closed this transaction on September 20th, 2016. PEM looks forward to Ashley Village’s inclusion into its Southeast, United States portfolio, which has generated stellar operating performance buttressed by strong manufacturing employment growth and favorable market dynamics. PEM Residential will manage the property.

PEM capitalized the transaction with floating rate debt provided by Fannie Mae and $6,490,000 of equity. Significant demand for this equity offering was driven by the following investment characteristics:

  • 18%+ forecasted internal rate of return
  • 12.8% cash-on-cash return
  • Ability to acquire Ashley Village at 15% below the average sales comps in the North Charleston, SC market
  • Substantial upside in rental rates and operating efficiencies