By Robert Demeter
Atlanta–Admiral Capital Group and McCann Realty Partners recently announced the acquisition of Howell Bridge Apartments, a 256-home community located in Duluth. The property represents Admiral’s third investment in the Atlanta MSA and its first joint venture with McCann.
Built in 1985, the two-story, garden-style property is located on Peachtree Industrial Boulevard, in close proximity to I-85, one of the main thoroughfares in the northern Atlanta suburbs and various retail destinations, including Gwinnett Place Mall. Howell Bridge’s floorplans across 32 acres offer one-, two- and three-bedroom apartments ranging in size from 800 to 1500 square feet. Amenities include a fitness center, tennis court, swimming pool, laundry facilities and fireplaces in select units.
“We have looked at many opportunities together and are excited to find a heavy renovation opportunity in an improving submarket with strong demographic trends,” said McCann President Matthew T. Akin.
The versatile value creation opportunity was one of the primary reasons the venture viewed the acquisition worthy. Admiral and McCann’s business plan focuses on three value-enhancement drivers, including investing significant capital for repairs, upgrading the unit interiors and amenities, and institutionalizing the property management. The property will be managed by Pegasus Residential, LLC.
“The suburban Atlanta apartment market continues to have strong rent growth due to job creation. Repositioning the property by upgrading the exterior appearance, amenities, and unit interiors will allow us to provide a more positive experience for residents while increasing the value of the property,” said McCann Vice President of Acquisitions Thomas Upson.
According to Yardi Matrix the last sale date of Howell Bridge Apartments was in September 2006, with Resource Real Estate as the buyer and The Connor Group representing the seller. The sale price of the property was $19.3 million. The median rent for the three apartment types as of 2016 is $900.
Admiral Capital Group was founded by David Robinson and Daniel Bassichis to invest in real estate and private equity opportunities. Admiral, in partnership with USAA Real Estate Co. acquires value-add office, multifamily, hospitality and retail properties in major U.S markets.
Image courtesy of Admiral Capital Group and McCann Realty Partners.