Property Overview:Berkshire Dilworth
Buyer:Tishman Speyer
Seller:Berkshire Residential
Property Type:Mid-rise Residential
Number of Units:296 Units
Location:Charlotte, North Carolina
Price:Undisclosed

Over the past two years, New York-based real estate developer and investment manager Tishman Speyer has continued to expand its residential portfolio. According to a press release provided to Multifamily Dive, since 2023, the company has acquired 11 residential properties across two countries and nine states, involving more than 3,000 units. Meanwhile, the company has started or completed construction on approximately 4,100 apartments, with another 8,000 units in the development pipeline.

Earlier this week, Tishman Speyer continued its acquisition pace, purchasing the Berkshire Dilworth community in Charlotte, North Carolina, which contains 296 units, from Berkshire Residential. According to the press release, the property was built in 2016, currently has a 97% occupancy rate, and features unit types ranging from studios to two-bedrooms, with 3,000 square feet of street-level retail space above.

This acquisition is the seventh residential transaction for Tishman Speyer's TS Plus fund. The fund focuses on core-plus investments in high-growth metropolitan areas with strong long-term fundamentals. In January of this year, the fund acquired The Maggie apartment community in Raleigh, North Carolina, which has 244 units, through the same vehicle.

The TS Plus fund has raised $973 million to date, and its portfolio includes industrial properties in Northern California and South Florida, as well as residential communities in Chicago, Dallas, Raleigh, and Montclair, New Jersey, according to the press release.

Amenities at Berkshire Dilworth include a fitness center, outdoor pool, rooftop lounge, yoga room, and a pet spa. Tishman Speyer plans to renovate the property's common areas and facade, and upgrade the interiors of the units, according to the press release.

The property is located in Charlotte's popular Midtown-Dilworth area, with convenient access to Midtown, South End, and Uptown Charlotte. It is adjacent to Carolinas Medical Center, Atrium Health's flagship hospital, as well as The Pearl Innovation District, a $1.5 billion medical and life sciences campus.

"The quality of Berkshire Dilworth, combined with Charlotte's strong demographics and the high barriers to entry in this neighborhood, make it an extremely attractive addition to our core-plus fund," said Nikita Rao, Senior Managing Director at Tishman Speyer, in the press release.

Over the past few years, the overall Charlotte market has faced a large number of apartment deliveries, which has affected rental rates in the city. For example, according to Yardi Matrix data, Charlotte was one of the cities where rentsdeclined on both a monthly and annual basisin April.

However, Stephanie Garris, North Carolina Director and Principal at Arqline, told Multifamily Dive earlier this year that severalsubmarkets in the Charlotte area have begun to stabilize。

"Areas such as South End, LoSo, and Uptown Charlotte are seeing stronger leasing velocity as young professionals continue to return to amenity-oriented urban communities," Garris said. "Concessions at many stabilized assets have decreased from roughly 8-10 weeks of free rent to about 4-6 weeks."

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