Atlanta Affordable Community Changes Hands
- Sep 11, 2019
Alcott Capital has acquired Shamrock Gardens, a 52-year-old multifamily community in Atlanta, for $23.4 million. The seller was Legacy Shamrock Community. The property had previously been financed with tax-exempt bonds that were defeased at closing. The transaction was financed with a 10-year Fannie Mae DUS loan.
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The bond financing led to the assignment of the existing Land Use Restrictive Agreement (LURA) by the buyer at time of sale. That led to Shamrock Gardens being maintained as affordable housing. The LURA requires that until December 2028, a specified percentage of Shamrock Gardens apartments continue to be occupied by low-income residents.
Situated at 1988 Plaza Lane, the all-brick Shamrock Gardens features 344 apartments in a mix of one-, two- and three-bedroom styles. Among the features of the apartments are individual air conditioning and high-speed Internet access. The property includes a state-certified on-site daycare center for children six weeks to 12 years old. Available to both residents and non-residents, the daycare center is a recipient of the Georgia Lottery Pre-K program, a free program based on “Bright from the Start” requirements and standards.
Shamrock Gardens has Metropolitan Atlanta Regional Transit Authority (MARTA) bus stops on premise. It is a short distance from Camp Creek Market and Atlanta’s Hartsfield-Jackson International Airport.
A $19.3 million loan for the transaction was provided by Greystone. The sale was handled by Barden Brown, Cory Caroline Sames, Taylor Brown, Chandler Brown and Bo Brown.
“This affordable housing property is unique in that it is home to a large reputable child care and education organization,” Barden Brown, senior managing director, Greystone Brown Real Estate Advisors, told Multi-Housing News. “The added component of a LURA brings further complexity to transactions of affordable housing.”
The transaction resulted in a number of firsts for Greystone. Among them was attaining the quickest contract closing on a LURA-restricted deal. The property was 98 percent occupied at the time of sale.