Avana Lenox
ATLANTA—Passco Cos., a privately-held Irvine, CA-based commercial real estate company, has acquired Avana Lenox, a 423-unit apartment community here. The acquisition brings Passco's current Atlanta multifamily portfolio to more than 1,800 units. The firm purchased the asset from Greystar, who will remain the property manager for the community, for a total consideration of $106.5 million.
"Greystar successfully executed a well-received, two-tiered renovation program on close to 75% of the property, and our strategy will focus on capitalizing on the remaining renovation upside over the next few years as classic units become available," Colin Gillis, VP of acquisitions-east, tells GlobeSt.com. "Further, we plan to enhance the curb appeal through exterior improvements, a new roof, and additional amenity enhancements."
Gillis says Passco is drawn to Atlanta because of its numerous demand drivers, booming employment growth, and a geographic landscape that has fostered an expansive sprawl of desirable places to live and invest.
"Atlanta is where the greatest concentration of our portfolio is located because the area offers a multitude of options of great places to invest in the region," Gillis says. "Avana Lenox is our sixth investment in the Atlanta MSA over the last 10 years and five of them have been in different counties, with some of our properties having 60 miles between them."
While situated within a quiet community near million-dollar homes, Avana Lenox has significant visibility along main thoroughfares and is in close proximity to jobs and other conveniences.
"This is one of the best-located properties in Atlanta in terms of proximity to major employment centers," Gillis says. "Residents have near-immediate access to Interstate 85 and Georgia State Route 400, reaching nearly 500,000 jobs within a 10-15-minute drive, including those in Buckhead, Midtown, Brookhaven Medical Corridor, and Clifton Corridor."
Built in 1998, Avana Lenox is situated on 15 acres and features some of the largest floorplans in the market with an average of 1,203 square feet, over 40% larger than new development averages, Gillis notes.
The majority of Avana's units have been renovated in recent years to varying degrees, and the amenity offerings upgraded to Class AA quality, including full renovation of the leasing center, fitness center, club rooms, and pool area; an exterior makeover; and refreshed signage.
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