(Read more on the multifamily market.)
NORCROSS, GA-One of Houston and Tiburon, CA-based Concierge Asset Management's Opportunity funds has acquired an 856-unit class A workforce housing apartment portfolio for just under $60 million. The properties acquired are the 446-unit Barrington Court at 3800 Club Dr. and the 410-unit Barrington Chase at 3820 S. Norcross Tucker.
The seller is Chicago-based Jupiter Realty Co. Cushman & Wakefield Atlanta office associate director of multifamily Nathan Swenson advised the seller in the transaction. Financing for the portfolio was arranged by Brant Smith, VP of Capmark Finance in Houston.
Concierge asset management CEO Ted Kerr tells GlobeSt.com that the acquisition is consistent with the company's strategic plan of acquiring and repositioning workforce housing. "We like Gwinnett County; there is a lot of demand for workforce housing," Kerr says. "We are actively seeking more properties to acquire in the Atlanta area."
Occupancy rates currently average 90%. Rents for a one-bedroom, one-bathroom unit will start at $600. Atlanta-based Ram Partners has been appointed property manager for both complexes. The complexes are located four miles apart in Gwinnett County and one mile from I-85, the main northeast expressway from downtown Atlanta to the suburbs.
Concierge plans to spend about $3,000 per unit on upgrades to the properties. Improvements, depending on the apartment community, will include a clubhouse remodel, a new cyber café, new fitness center equipment, pool enhancements, landscaping improvements, new signage and outdoor barbeques with built-in stainless steel grills. Work on the improvements will begin immediately. The properties are in class B condition, but with the improvements, they will move up to B-plus and bridge the gap between B and A, according to company officials.
Concierge asset director of equity and investment finance Charlie Geiss tells GlobeSt.com the properties were first put under contract at a time when the debt markets were in turmoil. "The sellers really worked with us and gave us a little extra time to put the deal together," she says.
The Barrington portfolio is Concierge's third multifamily property investment in Atlanta. The company has also acquired, repositioned and sold Huntington Farms in Alpharetta and Grayson Park in Decatur.
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