Los Angeles company buys apartment development for $25M

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Turtle Creek Apartments, a 128-unit multifamily development in Fenton, Missouri, has sold for $24.9 million.

The buyer was RM Communities, a subsidiary of Los Angeles-based RealtyMogul, a private equity firm with investments over $2.8 billion.

The seller was Highgate Capital Group LLC, a Chicago-based firm whose 2019 acquisition of Turtle Creek for $19.73 million was one of the biggest commercial real estate transactions of that year.

The acquisition comes at a good time for investing in the multifamily market. Research from CBRE found that suburban properties in the Midwest and Southeast are expected to provide the best opportunities for investors this year, with St. Louis, Indianapolis and Kansas City among the best apartment markets in the country.

"We have a firm conviction in the underlying fundamentals of this property and of the broader growth of the St. Louis metropolitan area. Our community of investors are excited to gain exposure to this market, and we plan to responsibly manage Turtle Creek for years to come," Jilliene Helman, CEO of RealtyMogul and its RM Communities subsidiary, said in a statement.

Managing Director Ken Aston and Senior Director Andrea Kendrick of Berkadia’s St. Louis office represented Highgate Capital Group in the deal.

Built in 2018, Turtle Creek features two-bedroom units and a swimming pool, clubhouse and dog walking park.