Milestone Apartments REIT to Pay $46 Million for Alpharetta Community
- Jun 09, 2013
By Georgiana Mihaila, Associate Editor
According to an official company announcement, Milestone Apartments REIT has agreed to pay $46 million for the Century Windermere, a 346-unit Class A multifamily apartment community located in the Alpharetta/Cumming submarket of Atlanta.
The purchase price represents an initial capitalization rate of 6.36 percent and the transaction is expected to be immediately accretive to the REIT’s forecasted AFFO per unit. The acquisition—expected to close by June 30—will broaden the REIT’s portfolio, and increase the proportion of Milestone units in the Atlanta Metropolitan Statistical Area from 4.34 to 6.26 percent. As part of the purchase consideration, the REIT has negotiated an interest-only 10-year fixed-term mortgage of approximately $25.3 million. The balance of the purchase price will be funded by drawing on the REIT’s $50 million revolving credit facility.
“Century Windermere is an attractive asset that complements our established portfolio of high-quality multifamily properties serving mid-market renters in the US Southeast and Southwest. The property has a long-term trend of consistently high occupancy and steady rent growth,” said Robert Landin, CEO of Milestone Apartments REIT.
Built in 2001, Century Windermere is the sole multifamily property in the Windermere Planned Urban Development, an exclusive 1,400 acre master-planned luxury home and golf course community. Benefitting from proximity to several growing employment hubs, the property boasts an occupancy rate of 95.5 percent.
The luxurious one-, two- and three-bedroom units feature designer gourmet kitchens with custom GE appliances, oversized patios and balconies, large walk-in closets, wood-burning fireplaces, decorator light fixtures and vaulted ceilings.
Community amenities include a spa-inspired swimming pool with sundecks and cabana, complimentary poolside Wi-Fi, heated spa, expansive clubhouse with social room, executive business center, a fully equipped fitness center with cardiovascular equipment and individual weight training stations, as well as valet trash service and 24-hour emergency maintenance.
Images courtesy of Century-Apartments.com
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