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SNELLVILLE, GA-San Francisco-based RCMG has acquired the 132-unit Century Oaks apartment complex at 1501 Wiloaks Dr. with $8.3 million in financing from MidFirst Bank. Philadelphia-based BlueStone Real Estate Capital secured the loan, which will pay for the acquisition and capital improvements to the property.
The five-year loan has a 12-month interest only period and an 85% loan-to-value ratio. Bluestone senior director Kristopher Wood tells GlobeSt.com that the acquisition price for the property was $9.5 million with $650,000 of the loan to be used for capital improvements. "The buyer plans to make improvements to turn what is now a C class building into a B class building by spending $3,000 to $4,000 per unit on improvements," Wood says.
Century Oaks is a garden-style apartment community with one-, two- and three-bedroom garden- and townhome-style floor plans. Among amenities are a swimming pool, clubhouse, tennis courts and a laundry facility. Rents currently range from $690 to $1,050. In addition to the interior work, some exterior work will be done to improve the property's curbside appeal, Wood says.
The property is located 30 miles northeast of Atlanta in Gwinnett County, which is one of Atlanta's fastest growing submarkets. Gwinnett County has the second largest population in Georgia and is ranked one of the fastest growing counties in the United States. The complex is located between Interstate 85 and Highway 316, which provides access for commuters.
Wood adds that the transaction was completed during a time of volatility in the markets, but it did not impact the deal, in part because the lender is a balanced sheet lender, not a conduit lender. "The lender that the market is underserved by B-/C+ properties and that there was an easy value-add play on the property," he says.
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