ATLANTA—Distressed and run down—and attractive to an Atlanta multifamily investor. A portfolio of three multifamily assets just traded for a total of $6.75 million. The value-add portfolio offers 521 units.
John Stone, principal and managing director of Multi-Family Housing for Colliers International Tampa Bay, worked with Ron Cameron, senior vice president of Colliers International Atlanta and Robert Selton, president and CEO of Colliers International Northeast Florida, to broker the deal. Colliers represented the seller, The Harbor Cos.
“These properties were very distressed and run down,” Stone tells GlobeSt.com. “They need more than $10,000 a unit in renovations to restore to full operating condition. Replacement cost would have been around $100,000 a unit, but it is hard to use replacement cost as a rule of thumb on a 1970s vintage asset.”
Despite the condition of the multifamily assets, Colliers reports that the portfolio attracted multiple offers. The assets include Sandlewood Apartments, a 203-unit property built in 1989; Wyntrace Apartments, a 180-unit property built in 1973; and Wynview Apartments, a 138-unit property built in 1974. Sandlewood and Wyntrace are located in North Atlanta. Wynview is in Stone Mountain, GA., a suburb of Atlanta.
The portfolio sold for $12,956 per unit or $12.25 per square foot. On average, the multifamily assets are 60% occupied. Sage Equities, an Israeli foreign equity fund, acquired the assets. Tyler Averitt of Southeast Apartment Partners represented Sage.
“We expect to see a lot more distressed sales as the lenders and related borrowers dissolve their relationship,” Stone says. “While class B and C outnumber the transaction figures, there is a lot of focus on class A. In Atlanta, 23 class B and C properties were sold since January 2012, versus 13 class A properties. It is just that class A gets more press.”
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