Dealmaker: Phillips Realty Capital Structures $28M Equity Investment

Phillips Realty Capital, Bethesda, Md., structured a $27.8 million equity financing for a mixed-use property to be developed in Charleston, S.C.

Argosy Real Estate Partners, Wayne, Pa., purchased land on January 3 and is developing Morrison Yard Apartments in partnership with Woodfield Development, Charleston. When completed, the property will include 380 multifamily units and 23,600 square feet of ground-floor retail.

“The Argosy model has always been to source opportunities in partnership with experienced local operating partners,” said Argosy Vice President Jason Abel. “Charleston is a market that we have recently invested in and targeted.”

Phillips Realty Capital Managing Director Adam Bieber structured the joint venture equity investment. Pacific Coast Capital Partners, Los Angeles, supplied additional construction financing.

Located in the North Morrison District, a Qualified Opportunity Zone within Charleston’s Peninsula submarket, the site is part of a larger mixed-use development that will also include a separately owned, to-be-developed 135,000-square-foot Class A office building with 10,000 square feet of ground-floor retail.

The “NoMo” District is emerging as a popular residential destination, offering access to the market’s primary employers and amenity destinations in nearby Mount Pleasant.

The project represented AREP’s fourth qualified Opportunity Zone investment. Construction has commenced on the site, which will include a ten-story concrete high-rise building and a six-story wood-framed mid-rise building, each with studio, one-, two- and three-bedroom floor plans.