CHAPEL HILL — A local company plans a major makeover at the Foxcroft Apartments near Erwin Road after paying $22.3 million for the complex last month.
Daniel Eller, president of Eller Capital Partners, said the 22-acre property is in a good location, in one of the strongest and most stable apartment markets in the southeast. That makes it a viable long-term investment, he said.
“Foxcroft is a community that so many people have a connection to, and as a local Chapel Hill-based firm, we are very excited to be the caretakers of this asset for the foreseeable future,” Eller said.
The 248-unit complex was built in 1974 and sold for $6.2 million to Foxcroft Associates LLC of Raleigh in 1993, according to Orange County records. The latest sale was announced in an Oct. 1 letter to residents.
Foxcroft Apartments was not on the market, so the offer was a surprise, said Jeff Massengill, Foxcroft Associates LLC management partner.
“We always have a saying: Everything’s for sale for the right price,” he said.
Eller Capital Partners also plans to spend another $5 million to $10 million on repairs and renovations, according to the letter. The last major upgrade happened shortly after Foxcroft Associates bought the property.
Maintenance issues have built up over time and regularly inconvenience residents, Eller said. Next year, they hope to make repairs and upgrades that give residents “an improved community and lifestyle.”
The makeover is slated to include new roofs, bathrooms and kitchens, the letter said. Patios would replace screened porches. Tenants will sign a new lease when they move into the newly-renovated apartments, Eller said.
A two-bedroom apartment generally runs from the high $800 to high $900 range, although it varies by each unit’s floor plan and amenities, he said. They have not raised the rent since taking over, he said.
“We believe that over the next 12 months, we will be able to perform necessary maintenance and make other improvements that will benefit our residents as well as the long-term sustainability of the physical asset,” he said.
Foxcroft Apartments is the ninth multifamily property that Eller Capital Partners has bought in the Carolinas and Tennessee since 2007. Eller Capital Partners’ management team, Eller Residential Living, will provide on-site management.