by Evelina Croitoru
Atlanta— Bluerock Residential Growth REIT (BRG) has announced the purchase of the Nevadan Apartments, a 480-unit multifamily community in Sandy Springs, Ga. The company acquired the property through a joint venture with an affiliate of Carroll Org. for a total purchase price of roughly $68 million. The apartment community was sold by AION Partners, according to YardiMatrix.
BRG invested 90 percent of the venture’s equity requirement, which translates to approximately $23 million, while Carroll Org.’s affiliate invested the remaining 10 percent. The sourced off-market transaction was further capitalized with a senior loan of roughly $48 million.
“We see significant upside potential for this property and believe it to be a strong addition to the portfolio. The property has good, intrinsic value, while the Perimeter Center submarket and the larger Atlanta MSA show much promise for the coming years. Our ability to source this property at a favorable cost basis makes it possible for us to bring a strong product to market at competitive rents,” Ramin Kamfar, chairman & CEO of BRG, said in a prepared statement.
Located at 5501 Glenridge Drive NE, in the heart of Central Perimeter, the property features a fitness center, swimming pool and 960 parking stalls, among other amenities. The community comprises one-, two- and three-bedroom units averaging 1,100 square feet. The community stands in close proximity to nine Fortune 1000 companies, in an area that continues to expand its employment base with the recently announced relocation of Mercedes-Benz’s U.S. headquarters . In addition, the property is less than a mile away from the heavily trafficked I-285 and GA-400.
“Headquartered in Atlanta, we know the market well and have the ability to identify unique opportunities like Nevadan. The property benefits from an excellent Central Perimeter location, but has not achieved its full potential as evidenced by its below-market rents. Through substantial upgrades to the exterior, amenities and interiors, we plan to take Nevadan to the next level and narrow the rent gap between the property and its Class A competitive set,” Patrick Carroll, founder & CEO of Carroll Org., said in prepared remarks.
The property will be managed by Carroll Management Group. The revamping of the property will include the clubhouse, business center, fitness center and the pool area. In addition, a dog park, fire pit, seating area and outdoor kitchen will be added near the pool area.
According to YardiMatrix data the property was sold in 2007 for $63 million and purchased in 2009 by AION Partners.
Images Courtesy of YardiMatrix