Strata SFR Facilitates $6.4M Sale of 16 Single-Family Rental Properties in Charlotte, NC, and Atlanta, GA Markets
Charlotte, NC, January 27, 2025 --(PR.com)-- Strata SFR, a premier brokerage specializing in investment real estate, has successfully closed the sale of 16 single-family rental (SFR) properties spanning the Charlotte, NC, and Atlanta, GA markets. The $6.4 million transaction was structured as a 721 exchange, enabling the seller, a husband-and-wife investor team currently residing in Hawaii, to transfer ownership of their properties to their two sons.
The deal involved a regional real estate fund managing assets in both Southeast markets. The 721 exchange structure allowed the sellers to trade their real estate holdings for a combination of cash at closing and Operating Units within the purchasing fund. This innovative approach enabled the sellers to defer taxes on the non-cash portion of the transaction while still enjoying cash flow through quarterly distributions and home price appreciation tied to the fund's portfolio.
“Our goal was to transfer ownership of the assets to our two sons, allowing them to benefit from real estate ownership — cash flow and appreciation — without the burden of actively managing the properties,” commented the sellers.
As interest rates rise and the real estate market evolves, creative transaction structures like the 721 exchange have become critical tools for investors seeking to navigate a challenging environment.
“Finding solutions tailored to our clients' needs is at the core of what we do,” said Adam Michael Stern, CEO of Strata SFR. “The market for SFR portfolios has grown increasingly complex, with many institutional buyers constrained by higher rates and more conservative underwriting. In this case, identifying a fund equipped to execute a 721 exchange was the key to achieving the sellers’ goals. I’m proud of our team’s ability to deliver innovative outcomes in a tight market.”
The portfolio consisted of homes ranging from 1,540 to 2,800 square feet, built between 1998 and 2021, with an average of 4 bedrooms and 2.5 bathrooms. The average per-door price was approximately $400,000.
“SFR portfolio transactions remain a niche market,” added Ian Edmiston, Director of Investment Sales with Strata. “Before interest rates climbed, selling portfolios was a straightforward process with multiple buyers vying for assets, particularly in the Southeast. Today, higher rates and more constrained underwriting require brokers to adopt new strategies to help sellers achieve their objectives.”
About Strata SFR
Strata SFR is a leading brokerage specializing in investment real estate, including single-family rental portfolios, Build-for-Rent (BFR) communities, and residential lots. By leveraging an expansive Buyers Network and creative deal structures, Strata SFR empowers real estate investors to achieve their financial and personal goals.
For more information, visit www.stratasfr.com
The deal involved a regional real estate fund managing assets in both Southeast markets. The 721 exchange structure allowed the sellers to trade their real estate holdings for a combination of cash at closing and Operating Units within the purchasing fund. This innovative approach enabled the sellers to defer taxes on the non-cash portion of the transaction while still enjoying cash flow through quarterly distributions and home price appreciation tied to the fund's portfolio.
“Our goal was to transfer ownership of the assets to our two sons, allowing them to benefit from real estate ownership — cash flow and appreciation — without the burden of actively managing the properties,” commented the sellers.
As interest rates rise and the real estate market evolves, creative transaction structures like the 721 exchange have become critical tools for investors seeking to navigate a challenging environment.
“Finding solutions tailored to our clients' needs is at the core of what we do,” said Adam Michael Stern, CEO of Strata SFR. “The market for SFR portfolios has grown increasingly complex, with many institutional buyers constrained by higher rates and more conservative underwriting. In this case, identifying a fund equipped to execute a 721 exchange was the key to achieving the sellers’ goals. I’m proud of our team’s ability to deliver innovative outcomes in a tight market.”
The portfolio consisted of homes ranging from 1,540 to 2,800 square feet, built between 1998 and 2021, with an average of 4 bedrooms and 2.5 bathrooms. The average per-door price was approximately $400,000.
“SFR portfolio transactions remain a niche market,” added Ian Edmiston, Director of Investment Sales with Strata. “Before interest rates climbed, selling portfolios was a straightforward process with multiple buyers vying for assets, particularly in the Southeast. Today, higher rates and more constrained underwriting require brokers to adopt new strategies to help sellers achieve their objectives.”
About Strata SFR
Strata SFR is a leading brokerage specializing in investment real estate, including single-family rental portfolios, Build-for-Rent (BFR) communities, and residential lots. By leveraging an expansive Buyers Network and creative deal structures, Strata SFR empowers real estate investors to achieve their financial and personal goals.
For more information, visit www.stratasfr.com
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Strata SFR
Adam Stern
914-906-5847
www.stratasfr.com
Adam Stern
914-906-5847
www.stratasfr.com
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