29th Street Capital Buys 2 Atlanta Communities

The firm plans to upgrade the properties, which were acquired for $81.4 million.
ReNew at Sandy Springs. Image courtesy of 29th Street Capital

29th Street Capital has expanded its residential portfolio in metro Atlanta by acquiring two Class B communities totaling 411 units. The company purchased the pair of assets in Sandy Springs, Ga., for $81.4 million from an undisclosed seller.

Javier Bustillo, senior vice president of acquisitions for the Southeast at 29th Street Capital (29SC), said in prepared remarks that the properties were high-quality assets and had substantial value-add potential.

Located more than 20 miles away from downtown Atlanta, the company acquired ReNew at Sandy Springs, which will be rebranded to Aqua at Sandy Springs. The 219-unit property was originally constructed in 1985 as a 60-unit community and later saw an additional 159 units added in 2000. The property offers one-, two- and three-bedroom units that range in size from 850 to 1,400 square feet. Aqua at Sandy Springs also offers a swimming pool, fitness center, business center, playground and package lockers. Bustillo told Multi-Housing News that the community was 94 percent occupied.

Approximately four miles away from Aqua at Sandy Springs, 29SC also acquired Spalding Bridge Apartments. Similarly, the 192-unit Spalding Bridge offers one-, two- and three-bedroom floorplans that range in size from 933 to 1,438 square feet. Built in 1984, the community also includes a tennis court, pool, fitness center, dog park, sundeck, clubhouse and barbecue areas. Spalding Bridge is 97 percent occupied, Bustillo told MHN.

With the new ownership, management and leasing responsibilities of the communities will be assigned to Haven Residential, 29SC’s in-house property management group. 29SC is also planning to undertake a capital improvement plan for both communities which will include installing upgraded countertops, stainless steel appliances, modern backsplashes, new flooring, updated lighting and an in-unit washer and dryer. 29SC will also improve the amenities offered at both communities alongside their curb appeal.

METRO ATLANTA’S RESIDENTIAL REBOUND

With Aqua at Sandy Springs and Spalding Bridge Apartments, 29SC notches its 12th and 13th residential acquisitions in the metro Atlanta area. The company’s portfolio now totals nearly 3,000 units in the market, including a 300-unit community in Roswell, Ga., that 29SC acquired from Aspen Square Management in October.

Bustillo said in prepared remarks that the asking rents for the area increased 4.3 percent year-over-year due to the strong demographics and rebounding economy. Bustillo told MHN that the company is continuing to explore potential deals and constantly looking to acquire more properties, especially in the Atlanta market. Overall, 29SC acquired 19 conventional multifamily assets in the U.S. in the last year, totaling more than 4,000 units.