ATLANTA-AREA Property Partners has acquired Manchester at Mansell and Chatsworth Apartment Homes, two multifamily properties in the Atlanta area. Together, the properties sold for $50.4 million. AREA acquired the properties from RBC Capital Markets Corporation, which foreclosed on them earlier this year.
“We were able to acquire these complexes at a substantial discount and with renovations completed, the properties have future potential for rental rate growth to be more in line with the market,” says Richard Mack, AREA North America CEO. “The Atlanta rental market is poised for strong growth over the next two or three years, with little new construction in the pipeline and projected increases in population and employment.”
Located at 401 Huntington Drive in Alpharetta, Manchester at Mansell is a 468-unit garden style apartment community with one-, two- and three-bedroom units ranging from 890 square feet to 1,418 square feet. The property offers two swimming pools, a fitness center, a business center, a playground, three tennis courts and a volleyball court.
“Manchester at Mansell is located in a submarket that has the highest reported occupancy rates in the metro area right now at 94%,” Jake Reid, senior director of Franklin Street’s Atlanta office, tells GlobeSt.com. “The class A apartments in this market have actually seen a year-over-year increase in rents due to the lack of construction in the last several years.”
Located at 4700 North Hill Parkway along I-285, Chatsworth Apartment Homes is a 410-unit garden style apartment community located inside the perimeter just minutes from Buckhead and the Central Perimeter. Similar to Manchester at Mansell, Chatsworth Apartment Homes offers tenants a mix of one-, two- and three-bedroom units ranging in size from 950 square feet to 1,435 square feet and features two pools, a clubhouse and a tennis court.
“There has been a flight to quality in the metro Atlanta market on the institutional investment side with the lower-risk, higher occupancy rate markets being the big target,” Reid says. “The challenges that are still facing the area are overbuilding of single-family homes and condos and the absorption of that shadow market as housing for rentals.”
As Mack hinted, a extensive renovation program was launched by the previous owner that included both exterior and apartment renovations. That renovation was completed in 2009. AREA plans to leverage the property's low interest cost tax exempt bond financing for this acquisition. The amount of bond financing that runs with these properties is significantly in excess of the asset purchase price.
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