Terms of the deal were not disclosed, though the Fulton County Board of Assessors states that the 15.4-acre property is valued at $7.4 million and was previously owned by an entity listed as Germania Property Investor. According to a release, the complex was acquired at a "significant discount to replacement cost from a foreign investment fund liquidating its only multifamily asset."
Steve Heffner and Robert LaChapelle of CB Richard Ellis Capital Markets are credited with arranging the joint venture between Chartwell, which will manage the property, and ABR. CBRE also arranged the acquisition financing for Union Station.
"We acquired the asset at a basis that would not require substantial rent increases in order to achieve return objectives, although we believe we may see attractive rent increases after improvements," ABR's chief investment officer Tom Burton, tells GlobeSt.com. The joint venture plans to complete $2.6 million in upgrades to the property in the next year, including updates to the exterior and common areas and the restoration of approximately 60 units within the 450-unit garden-style apartment complex that are currently not rented. Beyond those "down apartments," the property is 92% occupied with average monthly rental rates at around $713, says Burton.
The community, located in Atlanta's South Fulton submarket, was built between 1989 and 1994 with amenities including clubhouses, pools, tennis courts, a workout facility and meeting space. According to the latest market report by M/PF YieldStar Inc. and Torto Wheaton Research, the submarket has the largest inventory of units in the Metro Atlanta area at 54,867, with 2,737 under construction and a vacancy rate of 10.1%. Chris Wyett, Chartwell's co-founder and principal, says the joing venture is confident in the market's success given its solid rental rate growth—about 1.4% up from last year, according to the market report—and limited supply of developable land.
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