(Read more on the multifamily market.)
ATLANTA, GA-Two suburban apartment complexes, with a total 440 units, are changing portfolios. Patrician LS LLC, based in Baton Rouge, LA, is purchasing the 232-unit Leafstone Apartments in Covington for $17.3 million and the 208-unit Cambridge Fair Apartments in Fairburn for $15.25 million.
Leafstone Apartments, located at 10100 Brown Ridge Rd., was sold by Leafstone One Ventures LP, based out of Frisco, TX, and Cambridge Faire Apartments, located at 900 Meadow Glen Pkwy., was sold by Cambridge Faire Properties LLC, based out of Suwanee. Both sellers were limited partnerships and the transactions were the sales of the last apartment complexes each of them owned, says Bo Brown, with Brown Realty Advisors. Brown Realty Advisors, in Atlanta, represented the sellers in the sales.
The cap rate for the Cambridge Fair sale was 5.9% and the cap rate for the Leafstone sale was 6.4%, Brown says. Leafstone "had a little bit higher cap rate because of the assumption of an existing loan," says Walter Miller, with Brown Realty.
Both complexes were built in 2001 and renovations are not needed for either property. Leafstone Apartments has monthly rents ranging from $670 for a one-bedroom apartment to $895 for a three-bedroom apartment. Community amenities including a pool, fitness center, car care center and detached garages. Cambridge Faire Apartments has monthly rents ranging from $607 for a studio apartment to $1,025 for a three-bedroom apartment. Amenities at Cambridge Faire include a fitness center, pool, tennis courts and detached garages, Miller says.
The properties are being purchased as part of a 1031 exchange, Miller says. "They are both class A assets in the suburbs of Atlanta," Brown says. Patrician also purchased 12 acres of vacant land adjacent to Leafstone Apartments for an additional $500,000. There are no immediate plans to develop the site but an additional 90 units are allowed to be constructed, Miller says. Patrician will manage both properties.
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