Arbor Terrace, Atlanta, GA
ATLANTA, GA—American Landmark Apartments has acquired a six-property multifamily portfolio for $274.25 million. The 1,863-unit portfolio stretches over five growth markets in the Southeast, including Atlanta, Orlando, Raleigh, Charlotte and Charleston.
CBRE organized a competitive sale process for the portfolio, which was especially attractive to investors seeking suburban value-add opportunities. CBRE's Shea Campbell, Kevin Kempf, Ashish Cholia, Colleen Hendrix and Phil Brosseau represented the undisclosed seller.
The portfolio assets include Arbor Terrace and Summerset in Atlanta, Bella in Orlando, Arbor Village in Charleston, Sterling Town Center in Raleigh and Integra Springs at Kellswater in Charlotte. More than 70% of the portfolio is less than 10 years old, and all assets offered value add opportunity, particularly on the interior units.
The markets in which the portfolio assets are located – Atlanta, Orlando, Charleston, Raleigh and Charlotte – are all high population growth markets. Each has experienced population growth of approximately 10% or more over the past five years and all are expected to grow approximately 10% more over the next five years. Comparatively, the national average population growth over the past five years was 3.7%, according to CBRE research.
Summerset, Atlanta, GA
American Landmark Apartments focuses on the Southeast and owned properties in Georgia, North Carolina, Florida and Texas prior to the acquisition. The purchase of the six properties expands American Landmark's portfolio to include South Carolina.
“Investors remain bullish on the Southeast and are particularly excited about the five markets represented in this portfolio,” CBRE's Campbell says. “We continue to see solid rent growth in these locations, on average 5.7% year-over-year, which fueled investor appetite.”
“The portfolio consists of 100% classic units, offering new ownership significant upside through a multitude of renovation scopes,” says Kevin Kempf, senior vice president with CBRE's Southeast Multifamily team.
CBRE's annual North American Cap Rate Survey shows that in the first half of 2018, overall suburban multifamily cap rates decreased six basis points to 5.53%, closing the gap between suburban and infill multifamily properties to less than half a percent. According to the survey, multifamily investors find value in new opportunities with greater yields, and are increasingly shifting their strategies to value-add acquisitions. The survey findings indicate that suburban multifamily pricing is expected to remain stable in the second half of the year.
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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].
