Investors Buy Metro Atlanta Multifamily Properties
- May 02, 2013
Atlanta—Carroll Organization and NorthStar Realty Finance Corp. have acquired two Atlanta multifamily properties, paying approximately $46 million. The properties are the 396-unit Chattahoochee Landing in Roswell, and the Abbey at East Cobb, a 200-unit property in the East Cobb submarket.
Chattahoochee Landing is on 28 acres overlooking the Chattahoochee River, which is accessible on foot by residents. The property is also near Historic Roswell, which is currently the subject of an $11 million redevelopment plan that will add a 20-acre park offering bike trails, a dog park, children’s play area, and a fishing dock.
The Chattahoochee property has large floorplans—averaging just over 1,300 square feet—and Carroll Organization says it plans to invest $1 million in capital improvements to enhance the property. Chattahoochee Landing is currently 97 percent occupied.
The company likewise plans to put money into Abbey at East Cobb, whose most recent renovations were in 2005 and 2008. Carroll Organization will invest in new landscaping and upgrades of the pool, grills, and outdoor furniture, as well as for the transform of the current clubhouse into a fitness center, while the current gym will serve as a new resident lounge. The Abbey at East Cobb is currently 98 percent occupied.
As the multifamily market has improved, Carroll Organization has aggressively expanded its holdings. Over the last 18 months, it has completed over $500 million in multifamily acquisitions.
According to investment specialist Marcus & Millichap, further improvement in property fundamentals this year will push greater Atlanta apartment rents further above their pre-recession peak and allow landlords to realize the strongest rent growth since the downturn. The company predicts that for 2013, average effective rents will rise to $849 per month, a 3 percent gain from last year. Average effective rents ticked up 1.2 percent during 2012.