Harbor Group Sells Suburban Atlanta Asset
- Nov 21, 2019
Harbor Group International has continued its transaction cycle selling the Preserve at Mill Creek, a 400-unit, Class A apartment community in Buford, Ga., to White Oak Partners for $75 million.
The sale was subject to a $49 million loan held by New York Life Insurance that has a due date of Nov. 10, 2026, according to Yardi Matrix data.
Located at 1400 Mall of Georgia Blvd. NE, the property is 98 percent occupied. The property has one-, two- and three-bedroom floorplans with units ranging in size from 697 square feet to 1,406 square feet with an average of 1,076 square feet. Rents range from $1,086 to $1,623 with an average of $1,227. Washer/dryers, balconies and fireplaces are available in select units. Community amenities include a fitness center, business center, tennis court, swimming pool and playground. Some covered parking is available and there are parking spaces for 650 vehicles.
The company said it had paid nearly $56 million for the suburban Atlanta asset, realizing a 34 percent increase by selling the property. HGI acquired the property from Sherman Residential in September 2016. Sherman bought the 34-acre site, then known as AMLI at Mill Creek, from AMLI Residential for $40.5 million in December 2011, according to Yardi Matrix.
HGI officials said the firm, which targets multifamily properties with value-add potential, spent nearly $4 million on renovations, including renovating many of the unit interiors and improving the overall curb appeal. Richard Litton, president of HGI, said in a prepared statement the upgrades made by HGI to the Preserve at Mill Creek increased the property value by $19.05 million.
Litton said the New York City-based firm saw significant value in investing in value-add multifamily properties and would continue to focus on deals that live up to the standards of its clients. He cited a recent $50.5 million purchase, The Cedars at Elm Hill, a garden-style apartment community in Nashville, Tenn., that will also get improvements.
Last month, HGI sold Coventry at City View, a 360-unit Fort Worth, Texas, multifamily community, to WAK Management Co.