Private Equity Bets Big on Charlotte's Mid-Tier Apartment Market

CHARLOTTE, NC – January 06, 2026 – As Charlotte navigates a complex period of record-breaking apartment construction and shifting rental dynamics, Scottsdale-based private equity firm Elevest Capital has signaled strong confidence in the city's long-term fundamentals. The firm, in partnership with operator Rise48 Equity, announced the acquisition of a 240-unit multifamily community, a strategic purchase that spotlights a growing investment thesis: capitalizing on the potential of well-located, older properties ripe for modernization.

The deal, completed through Elevest Capital's Fund 64, involves the property formerly known as The Avalon, now rebranded as Rise Avalon. Located at 6000 Regal Estate Ln, the 1999-built community represents a classic B+ asset—a property with good bones in a desirable submarket, but lacking the modern finishes and amenities of its newer, more expensive competitors. This acquisition is not just another transaction; it's a calculated bet on the enduring appeal of the city's mid-tier housing stock.

"Closing Fund 64 and acquiring this asset highlights the strength of our investment strategy and the value we bring to investors," said Adam Williams, Founder & CEO of Elevest Capital, in a statement. "Charlotte continues to demonstrate strong economic momentum, making this property a standout addition to our portfolio."

The B+ Bet Amid a Market Shift

The core of the strategy for Rise Avalon is a comprehensive "value-add" plan. This approach moves beyond simple maintenance to a full-scale transformation aimed at elevating the property's market position. The plan includes modernizing unit interiors with updated kitchens, bathrooms, flooring, and fixtures. Crucially, it also involves adding in-unit washers and dryers, an amenity that has become a near-essential requirement for today's renters and can command significant rent premiums.

This B+ strategy is particularly timely. While Charlotte's skyline is dotted with cranes and new Class A luxury apartments, these come with premium price tags. The Elevest and Rise48 venture aims to capture the so-called "missing middle" of the rental market: residents who desire contemporary living spaces but are priced out of brand-new construction. By renovating an older asset, the partnership can offer a competitive, modern product at a price point that remains below that of top-tier properties.

Historically, Class B multifamily properties have been strong performers in the Charlotte market, leading rent growth over the past five years. While recent data from Q2 2025 shows a slight dip with a -0.5% annual effective rent change for this asset class, the long-term thesis holds that renovated B+ units are well-positioned to attract tenants as the market absorbs its current wave of new supply.

Navigating Charlotte's Construction Headwinds

The acquisition comes at a pivotal moment for Charlotte's multifamily sector. The market is grappling with a formidable construction pipeline, with approximately 30,650 units under construction as of late 2024. This surge in new inventory has inevitably created headwinds, softening occupancy rates from a high of 95-96% down to around 93%. In the third quarter of 2025, the vacancy rate rose to 8.2%, and year-over-year asking rents declined by 1.3% as property managers prioritized filling units over pushing rents.

However, these short-term challenges are counterbalanced by powerful long-term economic drivers. Charlotte’s job market remains robust, adding over 30,000 net jobs through April 2025, with an unemployment rate of 3.6%—well below the national average. Furthermore, the city’s absorption rate is staggering. In the second quarter of 2025, the market absorbed a record 22,106 units, nearly triple its decade-long average and a strong indicator of sustained housing demand. This suggests that while the market is currently digesting a massive supply delivery, the underlying demand driven by job and population growth remains exceptionally strong.

Major developments like The Pearl Innovation District, a $1.5 billion public-private partnership expected to create thousands of jobs, further bolster the case for long-term investment. Elevest Capital's move can be seen as a strategic entry point, acquiring an asset while the market is temporarily softened, with the expectation that rents will resume their upward trajectory by 2026 as the supply wave crests and absorption continues.

A Partnership Forged in Value-Add

This transaction is not Elevest Capital's first foray into the Carolinas, nor its first partnership with Rise48 Equity. The collaboration leverages the distinct strengths of each firm: Elevest provides the capital and investment strategy, while Rise48 brings a vertically integrated operational platform to the table. Rise48 Equity will not only oversee the extensive renovations but also manage the property directly through its in-house arm, Rise48 Communities.

This hands-on approach is a cornerstone of the partnership's model. Rise48 has a rapidly growing portfolio in North Carolina, with recent acquisitions in Raleigh and Greensboro, as well as several other properties in Charlotte, including Rise Sunridge and Rise Stone Gate. This deep regional focus allows the firm to deploy its renovation and management expertise with efficiency and local market knowledge.

"This investment exemplifies our disciplined approach to multifamily investing, targeting assets with clear value-creation pathways in high-demand markets," noted Dana Williams, President of Elevest Capital. "Our team's hands-on management and renovation expertise will be integral to realizing the full potential of this property."

The partnership's repeated focus on similar value-add projects, such as Fund 62's acquisition of a 263-unit portfolio in Chapel Hill and Greensboro, underscores a consistent and replicable strategy. For investors in funds like Fund 64, this model is designed to increase the property's Net Operating Income (NOI) through higher rents and stable occupancy, ultimately appreciating the asset's value and delivering on the firm's promise of building generational wealth.