Cortland Adds 319-Unit Community to Atlanta Portfolio
- Feb 06, 2019
Cortland has acquired Domain at Phipps 319-unit property in Atlanta’s popular Buckhead submarket, rebranding the asset as Cortland at Phipps Plaza. With the deal, the company increased its Atlanta-based multifamily portfolio to more than 11,000 units.
The seller was Dallas-based Columbus Realty Partners, according to Yardi Matrix.
“Adjacent to the Phipps Plaza redevelopment, we believe that Cortland at Phipps Plaza will benefit from as yet untapped rent growth and land basis appreciation,” Bret Hewett, Cortland’s director of investments, told MHN. “As one of only a handful of midrise assets in a high-rise location, we believe we were able to acquire this asset well below replacement cost value.”
Located at 707 Park Ave. NE Cortland at Phipps Plaza offers a mix of studios, one- and two-bedroom units, with ceramic bath flooring and steel appliances. Community amenities include a business center, BBQ area, dog grooming stations and electric car charging stations.
“Cortland at Phipps Plaza’s location in Buckhead is an amenity in itself, as is the community’s location adjacent to Phipps Plaza,” Hewett said. “Other on-site amenities include a dog park and pet spa, a pool and an outdoor yoga space.”
Cortland at Phipps Plaza was 94.7 percent occupied at the time of the transaction, according to data provided by Yardi Matrix.
A Thriving Community
Buckhead has experienced nine straight years of positive net absorption of office space and is an area on the rise.
The property is close to numerous neighborhood attractions and provides convenient access to GA400 and MARTA. Phipps Plaza is just a short walk away, and features plenty of retail, dining and entertainment venues. A mall, currently under development, will eventually include a Nobu Hotel and Restaurant; a three-level Life Time athletic club; a new, 13-story, 350,000-square-foot Class-A office building; and an outdoor event venue.
Cortland will make several renovations and upgrades to the community.
“We are upgrading the amenities, the landscaping and will make minor but impactful improvements to the apartment homes for the benefit of our residents,” Hewett said.
Jason Nettles, HFF’s senior managing director, and Megan Thompson, the firm’s senior director, brokered the deal.
According to Hewett, Cortland is currently seeking core and core plus investment opportunities, in addition to value add opportunities, in key markets to further diversify its portfolio.
In October, Cortland Partners acquired Home at The Battery Atlanta, three luxury apartment communities located within The Battery Atlanta, a 1.5 million-square-foot mixed-use destination. A joint venture between Pollack Shores Real Estate Group and Braves Development Co. sold the property.
Image courtesy of Yardi Matrix