Merion acquired the newly constructed Carillon Woods in August 2021. The Property was developed, owned and managed by a large Delaware homebuilder. Although the property is new, there are several opportunities where Merion can add value. In addition, Merion has budgeted an aggregate of $496,000 for targeted capital improvements that will create immediate value in terms of resident experience and satisfaction. Additionally, Merion has assumed from the Seller a newly originated HUD 223(f) mortgage loan. The loan has very attractive financing terms with a fixed interest rate of 2.38% amortizing over 35 years.
Merion is in a unique position to acquire this 204-unit apartment project in a vibrant and growing market with limited institutional quality multifamily communities like Carillon Woods. The Property was built between 2018 and 2019 with the final building delivered in February 2020. Despite expected headwinds from the pandemic, the Property leased up quickly, achieving stabilization by July 2020. The seller had been focused on achieving high occupancy and has yet to aggressively push rents. With limited, high-quality apartments available and strong population growth, the Property has remained fully leased since stabilization and most recently has achieved strong new lease and renewal lease rents. Merion will endeavor to maximize revenue growth upon takeover.
