Hamilton Point Investments acquired Retreat at Stonecrest, located at 40 Amanda Drive in Lithonia, Ga. for $23 million.
“Retreat fits well with our strategy, which is to buy post-2000 construction apartment deals in growing markets for well below replacement cost,” David Kelsey, co-founder of HPI, told Multi-Housing News. “We own a half-dozen other properties within a 20-minute drive, so we know and like the market.”
The 276-unit community was originally built in 2003 and offers one-, two- and three-bedroom floorplans ranging from 890 to 1,350 square feet. Apartment features include washer/dryer hookups, private balcony/patios and ceiling fans. Residents have access to amenities such as a playground, 24-hour fitness center, barbecue picnic area, clothing care center, business center, swimming pool, outside storage, laundry facilities and 550 parking spaces.
This marks the final acquisition of HPI Real Estate Fund IV, which closed to new investors in December 2016 after purchasing 12 properties totaling 2,616 units. The fund raised $86 million in equity and paid $215 million for the properties. The firm is currently raising HPI Real Estate Fund V, which just closed its first acquisition and is working on a second under contract. All of HPI’s properties are managed by Hamilton Point Property Management.
“The seller was a TIC syndicate put together before the crash. The original sponsor disappeared a half decade ago and the place has sort of bounced around among management companies,” Matt Sharp, co-founder & managing principal of HPI, told Multi-Housing News. “Minimal capital upkeep occurred, leaving the property well-suited for the common area and unit upgrade program HPI generally pursues. We expect to realize some management upside as well.”
Images courtesy of Retreat at Stonecrest