FCP Grabs $45M GA Property

Federal Capital Partners has acquired the 446-unit, garden-style Stratford Ridge in the Atlanta suburb of Marietta. This represents the company's fifth investment in the area.

stratford ridgeChevy Chase, Md.-based Federal Capital Partners (FCP) has acquired the Stratford Ridge community in the Atlanta suburb of Marietta, Ga. The 446-unit garden-style property features a mix of one-, two- and three-bedroom apartments. This represents FCP’s fifth investment in metropolitan Atlanta.

Marietta is an excellent submarket with a supply-demand imbalance, in part due to the declining workforce housing inventory in contrast to the strong job growth, which we believe will continue to generate healthy demand for these price points,” FCP senior associate Alex Cathcart told MHN. “Further, we liked this property due to its excellent accessibility, frontage on Delk Road, and big, family-friendly units in one of Atlanta’s best school districts.

“The large, hilly site and the age of the property pose some maintenance challenges, but our long history of operating similar properties up and down the East Coast ultimately gave us confidence in our investment.”

The above-market vacancy at the property limited the leverage buyers could place on the asset, Cathcart said. “But our access to capital and deep relationship with Capital One allowed us to capitalize and close the transaction quickly,” he added. “The seller, Bridge Investment Group, was excellent to work with.

Amenities

Among the amenities at Stratford Ridge are a pool and sundeck, clubhouse, fitness center, playground and pet park. The community also offers an after-school program.

Many of the apartments have been updated, but FCP intends to invest in capital enhancements to the existing site and buildings, and will undertake interior unit renovations and amenity improvements.

The current features and finishes of Stratford Ridge include dishwashers, gas ranges, disposals, hardwood floors and washer-dryer connections. Kevin Geiger of CBRE represented the seller in the transaction.

Many of the competing properties have undergone various common area, amenity and in-unit renovations that are generating rents several hundred dollars above those at Stratford Ridge, so we believe that certain value-add initiatives could be successful,” Cathcart concluded. “In 2018, we plan to renovate the clubhouse and gym, reinvest in the grounds, and update those units with older finishes.”