Phillips Realty Capital structures USD27.8m equity investment with Argosy for QOZ development

Phillips Realty Capital (PRC) has structured a USD27,800,000 equity financing on behalf of Woodfield Development. Argosy Real Estate Partners (AREP) provided a joint venture equity investment toward the development of Morrison Yard, a 380-unit, trophy multifamily community in Charleston’s Morrison Drive (NoMo) neighbourhood on the Upper Peninsula. 

The project is AREP’s fourth qualified Opportunity Zone investment. The joint venture equity investment was structured by Adam Bieber, Managing Director at Phillips Realty Capital. 

Construction has commenced on the site, which will consist of a ten-story concrete high-rise building and a six-story wood-framed mid-rise building, each featuring studio, one-, two-, and three-bedroom floor plans with best-in-class interior appointments and community amenities. The complex will offer ground-floor retail, a two-story parking structure, an expansive clubhouse, eight open courtyard spaces, multiple water features, and unparalleled views. The NoMo area in the Peninsula submarket is emerging as Charleston’s premier residential destination, offering tremendous access to the market’s primary employment nodes and lifestyle amenity destinations in nearby Mount Pleasant. 

“We are thrilled to have had the opportunity to work on behalf of Woodfield Investments and Argosy Real Estate Partners on the structuring of Morrison Yard,” says Bieber. “Both groups contain the perfect mixture of expertise and experience in the market, and we look forward to seeing how this incredible, transformative project changes the landscape of the NoMo District in Charleston.“ 

“Since the moment we sourced Morrison Yard, we have been excited about the opportunity. This development was sourced prior to the Opportunity Zone designation, and upon receiving that designation, we were excited about how the advantages would benefit our partners as well as the community,” says Woodfield Partner Mike Schwarz. 

“Adam and PRC have been a terrific partner in understanding our developments and finding excellent parties to collaborate with,” adds Schwarz. “The entire Woodfield team is elated about our first joint venture with Argosy Real Estate Partners, which we hope will be the first of many.” 

Argosy Vice President Jason Abel says: “The Argosy model has always been to source opportunities in partnership with experienced local operating partners. Charleston is a market that we have recently invested in and targeted, and we are excited about the partnership with Woodfield Development and the addition of Morrison Yard to our platform. We echo the excitement around the project and look forward to a successful relationship with Woodfield on what we hope will be the beginning of a multi-project relationship.”