ALPHARETTA, GA—Mesa West Capital has provided $110 million in first mortgage debt for the off-market acquisition and stabilization of a recently completed 560-unit apartment community in Alpharetta, GA, by a joint venture of KKR and Carter-Haston.
The five-year, floating rate loan is secured by Juncture, a class A garden-style multifamily community located at 910 Deerfield Crossings Drive. The phased development was completed in October 2017 to meet the on-going demand for quality rental housing, as numerous high-paying jobs have been created by the many healthcare and technology companies locating in Forsythe County.
“Juncture is one of the highest quality assets in Alpharetta, a submarket which has benefited from job and population growth, in part due to the successful Avalon high-end lifestyle development,” says Mesa West Capital principal Ronnie Gul who led the Los Angeles-based origination team, which included associate Seth Hall. “Stringent entitlement requirements have created a high barrier to entry, which limits overall supply in the submarket.”
“In addition, the property is located within the highly coveted Forsythe County School District, ranked as the third best school district in the state of Georgia,” Hall says. “This bodes well for the sponsor to capture demand and quickly stabilize the property.”
One of the newest multifamily projects in the submarket, Juncture features a mix of one- and two-bedroom apartments across 16 buildings on a low-density 24-acre site. Each unit is characterized by its high ceilings, stainless steel appliances, full size washer/dryer and high-end finishes such as stone countertops, hand-scraped hardwood flooring, designer lighting and custom cabinetry. The project features resort-style community amenities including pool and spa, wellness center, and entertainment lounge with WiFi café. The property was 54-percent leased at the time of loan closing.
Financing for the transaction was arranged by KKR Capital Markets.
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
