Peek says the seller was motivated to dispose of the asset because there was a maturing loan in place. Since many in the 55-plus age group are selling homes in order to move into complexes like Parc Alpharetta--and because of the stalled housing market--lease-up was slow. But Peek expects the demand to rise as the housing market recovers.

“With age-restricted deals, lease-up is the hard part,” Peek says. “Once the lease up is completed, residents tend to want to stay. So it’s what we call a sticky rent roll.”

The city’s only active adult community for residents 55 and older, Parc Alpharetta is a four-story, two-building midrise structure with 210 units. The complex offers service and amenities that target this demographic, including a fitness center with wellness salon, exercise classes, library and business center, shuttle services and planned social events.

Originally developed by Wood Partners and Parc Communities, Parc Alpharetta was financed initially with low floater bonds issued by the City of Alpharetta to fund construction. Waterton intends to remarket and enhance the bonds.

“We purchased more than $21 million worth of bonds that need to be enhanced and remarketed,” Peek says. “Whether or not we use all of those bonds for this project or for other assets we own, there is value in having low-interest rate long-term financing available via these bonds.”