Bringing a Stable Asset to the Next Level

Upgrades on this 1993 asset will build value for investment partners as well as residents.
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Stockbridge, Ga.—PointOne Holdings has acquired Southwinds Stockbridge Apartments, a 240-unit, garden-style, multifamily rental community in the Metro Atlanta area, for $17.8 million, and will rebrand it as Southwinds Point.

“What we loved the most about this property, from an investment perspective, is that even though it’s very stable and well occupied, there is an opportunity to perform upgrades to the amenities which will substantially improve the quality of the property and add true value to the deal,” Ben Colonomos, PointOne Holdings’ managing member, told MHN. “There has obviously been some pressure on treasuries recently but overall, debt is widely available and from a historical perspective, interest rates remain very low. For the time being we continue to be buyers, particularly for longer-term holds.”

Originally constructed in 1993 and substantially renovated in 2007, the property recently experienced capital improvements including new roofs and new hardiplank siding, which was painted in March 2015. Still, PointOne Holdings plans to invest $1.25 million in further capital improvements to the property, which will include upgrades to unit interiors, as well as to the leasing and resident centers.

Approximately $400,000 will go to improve the unit interiors by adding backsplashes, updating the cabinet doors and countertops in kitchens and bathrooms, adding vinyl wood plank flooring, microwave/vent hoods, new fans, and update window treatments.

The company will also modernize and add more amenities, including a new dog park, outdoor kitchens and fireplaces, new signage and a gazebo with picnic tables and outdoor grilling stations.

“We like to see properties that are stable but require capital to be brought to the next level,” Colonomos said. “We feel that Southwinds fits that criteria. As we execute on our capital improvement program, we will continue to build value not only for our residents but also for our partners.”

The property is located in Henry County, minutes from the I-675/I-75 interchange, which provides direct access to Hartsfield-Jackson Atlanta International Airport, Downtown Atlanta and many of the region’s predominate economic generators. It’s also located fewer than five miles from Piedmont Henry Hospital and nine miles from Southern Regional Medical Center.

“As a result of this strategic location, multinational companies continue to open major distribution centers in the area including: Home Depot, Nestle, Toys R Us, Luxottica, Kimberly-Clark, John Deere, Ford Motors, Bayer and more,” Colonomos said.

PointOne Holdings obtained a $13.75 million non-recourse loan at a fixed rate with a 10-year term from Starwood Mortgage Capital to complete the acquisition and was advised by Charles Foschini and Jason Hochman of CBRE Capital Markets.

Southwinds Point was 96-percent occupied at the time of the sale.