Unlocking Performance Across Key Sunbelt Portfolio

The Hawthorne Portfolio comprised three garden‑style multifamily communities - ARIUM Cumberland in Atlanta, ARIUM Mooresville in Charlotte and ARIUM South Oaks in Nashville -, totaling 903 units across some of the country’s most dynamic Sunbelt markets. Each of these metropolitan areas has long benefited from significant job expansion, population in‑migration and a pro‑growth business climate. Against this backdrop, the portfolio presented a compelling opportunity to acquire well‑located value‑add properties at an attractive basis, with clear operational and physical upside.

RMR Residential recognized that the combination of strong market fundamentals, limited supply pressure and proximity to major employment hubs positioned the portfolio for meaningful rent growth and operational improvement. The team’s strategy centered on elevating the living experience for residents while capturing value through targeted renovations and disciplined asset management.

Our approach

Investment thesis

The acquisition aligned with RMR Residential’s conviction in the long‑term strength of the Sunbelt region. Atlanta, Charlotte, and Nashville - all rank among the fastest‑growing metros in the country - offered a mix of employment diversification, affordability and quality of life that continue to attract new households. The Hawthorne communities were well positioned within these markets, yet each displayed opportunities for renovation and performance optimization. The team’s thesis was grounded in the view that upgrading both unit interiors and communal spaces would materially improve the competitiveness of the assets, drive rent premiums and appeal to a renter base increasingly seeking updated suburban housing. With an attractive entry basis and clear room for enhancement, the portfolio offered a balanced combination of near‑term cash flow and longer‑term value creation.

Asset management & execution

Upon takeover, RMR Residential implemented a coordinated asset and property management plan designed to maximize the portfolio’s operational potential. Interior renovations became a central focus of the strategy. Over the course of the hold period, 27% of units across the three communities were upgraded with modern finishes, including granite or quartz countertops, white shaker cabinets, stainless steel appliances and improved flooring and fixtures. These enhancements aligned the assets with current renter expectations and generated strong returns, producing an average premium of $212 per month - a 27% return on investment.

At the portfolio level, RMR Residential also committed to elevating the common areas and exterior environments that define the resident experience. The team successfully executed $1.8 million in amenity and exterior upgrades, spanning clubhouse renovations, pool enhancements, playground improvements, refreshed landscaping and expanded outdoor living spaces. These enhancements not only improved the aesthetic appeal of each property but also strengthened their competitive position within their respective submarkets. As renovations progressed, operational performance improved accordingly. New lease growth accelerated, and in the 30 days leading up to the decision to market the portfolio for sale, organic new lease rents rose 10.5% - evidence of both strong market conditions and the appeal of the upgraded product.

Performance impact

The Hawthorne Portfolio’s success was driven not only by the physical improvements but also by RMR Residential’s careful attention to market timing. As Sunbelt multifamily valuations reached peak levels, the team strategically elected to bring the portfolio to market. The response from prospective buyers was strong, reflecting both the robust fundamentals of the underlying markets and the quality of the executed business plan. The final sale price exceeded expectations by a considerable margin. The portfolio traded at a value 17.1%, or $47.5 million, above the broker’s initial opinion of value.