Arium Kennesaw
ATLANTA—ARIUM Kennesaw and ARIUM Kennesaw Villas, two properties located in Kennesaw, GA, have traded hands. The sale price: $29.3 million.
Carroll Organization sold the multifamily assets to Townsend Group. Carroll initially acquired the apartment buildings in September 2015 as a part of Carroll Multifamily Real Estate Fund III, LP and managed by Carroll Management Group.
“We were initially attracted to ARIUM Kennesaw and ARIUM Kennesaw Villas due to the properties' high-quality construction, functional floor plans, and most importantly, its walkability to Kennesaw State University, Georgia's third largest university with 35,000 students,” says M. Patrick Carroll, CEO of Carroll Organization. “We experienced tremendous occupancy and organic rent growth at both properties during our ownership, but we felt it was an opportune time to sell and realize significant profits for our Fund III investors.”
ARIUM Kennesaw includes 324 multifamily units on 40-acres of lush landscaping with mature trees in a garden setting. ARIUM Kennesaw Villas includes 200 units with custom home features.
“This investment provided an opportunity to acquire two well located properties within a dynamic submarket at attractive pricing,” says Robert Davies, principal with Townsend Group.
“Carroll did an excellent job of executing our venture's business plan, enhancing the properties' income through various value-add initiatives, allowing us to realize an attractive return for our investors.”
To date, Carroll has successfully exited 43 assets valued over $2 billion, including this transaction. The investments have produced an average IRR of 30%. Since 2017, Carroll has now sold fourteen properties totaling over $895 million and purchased forty properties totaling over $1.6 billion.
What can we expect in 2018 on the multifamily front in Atlanta? “The pendulum is likely to shift from sellers offering value-add opportunities to developers and merchant builders selling newly constructed communities,” Josh Goldfarb, vice chair in Cushman & Wakefield's Atlanta office, tells GlobeSt.com. “Some buyers are even actively seeking new-construction opportunities still in lease-up hoping to achieve a greater performance than the developer-seller.”
Goldfarb also sounds off in an article about Why We May See More Multifamily Portfolio Sales in 2018. And a multifamily asset in one of the highest Google search zip codes just traded hands. Get all the details.
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