For $25 million or $80,386 per unit, the entity has picked up the 93%-occupied asset. Marvin Banks, Gables' CFO, would not disclose the buyer's identity to GlobeSt.com.
"Our unleveraged internal rate of return of 14.6% for this investment was significantly in excess of our 10% weighted average cost of capital," Chris Wheeler, chairman and CEO of Gables, says in a prepared statement. "Selling an asset in Atlanta today at a 7.5% cap rate is an excellent price and cost of equity capital."
Built in 1995, Dunwoody Gables has a mix of one- and two-bedroom units ranging in size from 681 sf to 1,204 sf. Monthly rents start out at $765 and top out at $1,020.
Executives from Gables represented both the buyer and themselves in this transaction.
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