Georgia Portfolio Changes Hands for $203M

Carter Multifamily and RSE Capital Partners have acquired the 11 properties totaling 1,966 units. The Class B and Class C communities are located in the Savannah area, Augusta, Canton and Macon.
TEN35Alexander. Image courtesy of NorthMarq

Carter Multifamily and RSE Capital Partners have teamed up to acquire a portfolio of 11 Class B and C communities in Georgia from Kole Management for $202.5 million. The 1,966-unit portfolio deal involves a batch of six communities in the Savannah area that Carter previously announced it had bought for a total of about $84.3 million, plus an additional five communities in Augusta, Canton and Macon.

NorthMarq advised on the transaction, arranging the joint venture and securing six new Freddie Mac Value Add Green Advantage loans, five loan assumptions from Fannie Mae, and more than $40 million in equity over the entire portfolio, according to a statement. The financing package, which was secured within six weeks, included $110.1 million of new debt and joint venture equity. NorthMarq Managing Directors Melissa Marcolini-Quinn and Lee Weaver represented the buyers in the deal.

The partners plan to reposition several of the assets by rolling out a capital improvement plan, featuring upgrades to unit interiors and common areas. Carter also plans to bring property management services in-house.

Portfolio assembled then sold

The joint venture bought the Savannah-area properties totaling 810 units from Kole Management in June, namely:

  • Azure Cove: 1326 U.S. Highway 80 W. in Garden City (144 units)
  • Kessler Point: 901 Kessler Court in Garden City (120 units)
  • The Arbors: 4035 Kessler Ave. in Garden City (108 units)
  • Alhambra: 2200 E. Victory Drive in Savannah (150 units)
  • Carriage House: 125 Tibet Ave. in Savannah (144 units)
  • Ridgewood: 12008 Middleground Road in Savannah (144 units)

The communities were all built between 1968 and 1989 and were acquired by Kole Management over a period of two decades, according to Yardi Matrix data. The portfolio sale also includes the following properties, totaling 1,156 units:

  • TEN35Alexander: 1035 Alexander Drive in Augusta (200 units)
  • Heritage at Riverstone: 101 Heritage Drive in Canton (240 units)
  • Falls at Spring Creek: 1900 Wesleyan Drive in Macon (296 units)
  • Legacy at River Crossing: 1800 Wesleyan Drive in Macon (200 units)
  • Riverstone: 3900 Riverside Park Blvd. in Macon (220 units)

The above communities were built between 1986 and 2012 and were acquired by Kole Management from 2015 to 2017.

The real estate investment and management firm put its 13-property multifamily portfolio on sale last November in order to shift its focus to property management, according to a local media account. The portfolio appears to include all 11 properties that were offloaded to Carter Multifamily and RSE.