By D.C. Stribling, Contributing Editor
Audubon Communities, an Atlanta-based firm specializing in multifamily properties in the Southeast, sold a three-asset portfolio in the Peachtree Corners-Norcross submarket of Atlanta for $76.5 million to a private buyer. Mike Kemether and Tyler Averitt of Cushman & Wakefield represented Audubon in the transaction.
Two of the properties were developed in the 1970s, one in the 1980s. One of the older properties is Bella, a 318-unit community built in 1972. Audubon acquired Bella in mid-2011 and completed $7.1 million in capital improvements to it since then. The other older property is Center at Peachtree Corners, a 272-unit community also built in 1972. Audubon acquired the property in late 2011 and completed $10.5 million in upgrades. The third property in the portfolio, and the newest one, is Summit at Dawson, a 162-unit community built in 1983. Audubon also acquired the asset in late 2011 and completed $5.3 million in updates to the community.
Back in 2011, according to Audubon, each of the properties were in an advanced state of disrepair with down units, failed infrastructure, outdated systems and below-average amenities. Moreover, they suffered low occupancy: an average 42 percent across the portfolio. The capital investments involved a rebranding of the assets, extensive interior and exterior renovations and a complete re-imagining of the amenity packages for each property. The communities were an average 97 percent occupied at the time of Audubon’s disposition.
“These properties were our first post-recession acquisitions in Atlanta, and each required a multi-million-dollar investment to renovate and reposition them,” said Christopher Edwards, managing director for Audubon. “After owning them for six years, it was a difficult decision to sell the portfolio, but the timing was right to move on.”
During the summer, Audubon Communities purchased Lenox Park, a 292-unit multifamily community in Gainesville, Ga., for $22 million. The asset will be rebranded as Peaks at Gainesville.
Image courtesy of Audubon Communities