Origin Investments, TWO Capital Partners Team Up on $227M Multifamily Trio

The companies are constructing projects in three fast-growing Sun Belt metros.

AVA Gainesville. Image courtesy of Origin Investments and TWO Capital Partners

Private equity real estate fund manager Origin Investments and multifamily developer TWO Capital Partners are jointly developing three new build-for-rent properties with a construction value of $227.2 million. The projects, which are under construction in the Atlanta, Nashville and Charlotte, N.C., metros, total 523 units.

“The project will fare better than conventional projects in this dislocated capital market environment due to the significant demand by lenders to increase their exposure to BRF products and the higher debt yields and coverage this product can generate,” Dave Welk, Origin Investments managing director, told Multi-Housing News.

Two of the projects, AVA Gainesville in suburban Atlanta and AVA Madison in suburban Nashville, are being developed as Opportunity Zone properties in Origin Qualified Opportunity Zone II. Including those projects, Origin Investments has 17 Opportunity Zone properties in varying stages of development. TWO Capital Partners, meanwhile, has a total of eight AVA BFR communities under development. Totaling 1,700 units, these projects are located in Savannah, Greenville, Atlanta and Charlotte.

AVA Gainesville

Situated 40 miles northeast of downtown Atlanta, the $86.7 million AVA Gainesville will offer 231 rental units in a blend of 161 two-, three- and four-bedroom townhouses and 70 three- and four-bedroom single-family homes. Units will average 1,718 square feet. Located two miles from the restaurants, breweries and shops of historic downtown Gainesville, the property is near Lake Lanier.

“Demand for this type of product remains high within this infill location of Gainesville, which has proximity to downtown Gainesville and a significant number of employers along the 85 NE corridor of Atlanta,” Welk said.

AVA Madison

Set on a 50-acre site 13 miles north of downtown Nashville, the $84.8 million AVA Madison will feature 199 rental residences, comprising 93 two-, three- and four-bedroom townhouses and 106 three- and four-bedroom single-family homes. Collectively, the residences will average 1,777 square feet in size.

The setting of the development is near the headquarters of Dollar General, which employs 2,700 people. Another nearby employer along the Interstate 65 corridor is the Tyson Foods’ largest North America production facility.

AVA Matthews

The $55.7 million AVA Matthews is 12 miles from downtown Charlotte and will offer 163 residences, of which 26 will be townhouses. Another 37 will be detached single-family homes, while the remaining 100 will be apartments. Units will average 1,202 square feet in size. Located just off U.S. Route 74, with direct access to downtown Charlotte, the project is in the town of Matthews.

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