Chandler Residential Pays $80M for Atlanta Community
- Sep 03, 2020
Chandler Residential has grown its Atlanta footprint with the acquisition of a 500-unit apartment community for $80 million. The firm purchased Colton Creek in McDonough, Ga., from seller Fairfield McDonough LLC.
The deal marks Chandler Residential’s third acquisition in the Atlanta area over the last 18 months, following the firm’s $31.4 million purchase of the 276-unit community Retreat at Stonecrest in Lithonia, Ga., in August 2019 and the $30.6 million acquisition of the 294-unit community Shadow Ridge in Riverdale, Ga., in February of last year.
A Cushman & Wakefield team of Mike Kemether, Alex Brown, Travis Presnell and Robert Stickel represented the seller in the transaction.
Colton Creek is located about 30 miles southeast of downtown Atlanta, just off Interstate 75. The apartment community houses a mix of one-, two- and three-bedroom apartments averaging 1,134 square feet in size, according to Yardi Matrix data.
Common amenities at the property include a fitness center, clubhouse, tennis court, playground, swimming pool and 1,065 parking spaces.
The previous owner, Fairfield, obtained a $43.9 million Fannie Mae loan originated by PNC Bank in September 2017 to finance its $58.6 million purchase of the property. The loan is set to mature in October 2024.
The McDonough area has seen rapid growth due to its strong industrial and e-commerce corridor along Interstate 75. Since 2018, 27.5 million square feet of industrial space has either been completed or is currently under construction, according to Cushman & Wakefield.
Atlanta’s multifamily market recorded sharp drops in deal flow and occupancy over the summer, but construction has stayed fairly steady throughout the duration of the pandemic, according to a recent report from Yardi Matrix. Rents fell 0.2 percent between March and June, while the occupancy rate in stabilized properties dropped to 93.5 percent as of May, a 70 basis point drop the same time period last year.