DEAL OF THE DAY: Distressed Asset Sells for $3M
- Mar 23, 2009
By Anuradha Kher, Online News EditorLawrenceville, Ga.–Apartment Realty Advisors (ARA) recently brokered the $3 million sale of Meadows of Gwinnett, a 68-unit, individually platted complex of 17 quadraplexes located in Lawrenceville, Ga.The expansive community spans 10.59 acres with a very low density (6.42 units per acre). Unit mixes are comprised of two- and three-bedroom, two bath units. Occupancy at the time of the sale was 70 percent.Local buyer, Terrapin Apartments, LLC, acquired the distressed asset for $44,118 a unit capitalizing on the asset’s assumbable, non-recourse CMBS loan. The circa 1980’s constructed quadraplexes have some deferred maintenance and will require a capital infusion to update the interiors but afford the new buyer with up-side potential.ARA’s Richard Bell, who represented the seller, says, “These types of properties were originally constructed as condominiums in the early 1980’s but were converted to for-rent properties due to changing market conditions. Because these are individually platted buildings, with some capital investment for improvements, the buyer can sell the individual quadraplexes on a one-off basis.” Bell adds that a market exists for this type of investment and that there are several other communities in the area with similar structures in place.