(Read more on the multifamily market.)
ATLANTA-Centennial Holdings, based here, is acquiring a six-property multihousing portfolio for $205 million. The seller was a partnership of US Advisors LLC, headquartered in Napa, CA, and Creekstone, based in Houston. The portfolio contained a total of 1,946 apartment units.
The company has already closed on four properties which are located here and the surrounding area. Centennial is expected to close on a property in Charlotte, NC on Dec. 12 and a property in Durham, NC on Feb. 15. The portfolio had a cap rate of "roughly" 5¾%, says Sean Henry, a principal with Atlanta-based Apartment Realty Advisors, which represented the seller in the transaction.
The portfolio consisted of four properties in Atlanta and the surrounding area including Preston Pointe at Windermere in Cumming; Preston Park at Satellite in Duluth; the Heights at Peachtree Creek in Atlanta; and Preston Landing at Streetwater Creek in Lithia Springs. The two North Carolina properties are Parkside, which is located in Charlotte, and Courtney Creek, which is located in Durham.
The average age of the properties is six years with all of the Atlanta properties being constructed since 2001 and the oldest property constructed in 1998, Henry says. Creekstone had been managing the bulk of the properties with the exception of the Heights at Peachtree Creek. The occupancy rate is approximately between 92% and 93% for each of the properties, Henry says. The properties have a mix of one-, two- and three-bedroom units with the average unit size being 1,116 sf. The average rental rates range from $856 for Parkside to $1,268 at the Heights at Peachtree Creek, Henry tells GlobeSt.com.
Centennial Holdings acquired the portfolio because the company wants to increase its Atlanta portfolio and liked that each of the properties was located in different submarkets, Henry says. "Centennial has been expanding their portfolio [and] they liked the high quality of these assets," he says. "It is just a really high quality large portfolio which is becoming hard to find."
Centennial plans to hold the portfolio for four to seven years, according to Centennial president and chief executive officer W. Porter Payne Jr. in a released statement on the portfolio acquisition.
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