Atlanta Community Sells for $72M
- Nov 01, 2016
by Evelina Croitoru
Atlanta—Passco Cos. has announced the purchase of Two Blocks, a Class A, 400-unit mid-rise multifamily community in Dunwoody, Ga., for $72 million. The property was developed in 2008 by Pollack Shores Real Estate Group and has demonstrated rent growth of more than 11 percent over the past two years.
“We were able to acquire the Two Blocks community significantly below the cost basis for new mid-rise assets in the Perimeter Center/Sandy Springs submarket in a municipality that will not allow future multifamily construction at very attractive cap rates for Atlanta. Additionally, the property boasts some of the largest floor plans in the submarket, averaging over 1,000 square feet across a unit mix consisting of one- and two-bedroom floor plans. This will always provide a competitive advantage going forward in a world where floor plans are getting smaller and smaller,” Colin Gillis, vice president of acquisitions for the southeast region at Passco Cos., said in prepared remarks.
Located at 4000 Dunwoody Park, the property is adjacent to the largest office market in Atlanta, Perimeter Center, which comprises more than 30 million square feet of office and retail space and is home to more than 5,000 companies. In addition, the property offers convenient acces to a plethora of local retail and lifestyle destinations.
“While the property enjoys a very close proximity to some of Atlanta’s most important employment drivers, it enjoys more of a quiet, suburban-like, single-family setting, removed from the congestion in and around Perimeter Mall. It is an excellent combination of urban and suburban locations. The property also enjoys immediate access to I-285, GA-400 and I-85, which provides access to an additional 300,000 jobs in surrounding submarkets,” added Gillis.
Passco plans to implement a series of improvements to the interior and exterior of the community, including installing granite countertops in the kitchens and bathrooms and significant upgrades to the amenity package, including the expansion of the fitness center.
John Weber, Dan Phelan, and Bo Moore with ARA Newmark’s Atlanta team led the transaction team on behalf of the seller. Chris Black of KeyBank Real Estate Capital’s Commercial Mortgage Group was in charge of the acquisition financing through Fannie Mae, representing the buyer.
Image courtesy of Passco Companies