North Atlanta Community Trades for $59M

Kaplan Residential sold the 203-unit, mixed-use property in Sandy Springs, Ga., but intends to build other projects across the wider metro area.

Audubon has acquired Square One, a 203-unit community in Sandy Springs, Ga., for $59.2 million, and rebranded it as The Margo. The buyer purchased the six-story building from developer Kaplan Residential. At the time of the sale, Square One was 95 percent occupied.   

KeyBank has secured the financing for Audobon’s 12th acquisition in the state.

The new owner plans to invest $1.4 million in capital improvements. The rehabilitation would include updated amenities, a new yoga studio, exterior upgrades and interior touchups.

The seller acquired the land for the development in 2014 for $5.6 million and completed the project in 2017 using a $26.5 million construction loan from Truist Bank, according to Yardi Matrix data. 

Located at 6050 Roswell Road NE, the community includes studios, one- and two-bedroom apartments, ranging from 620 square feet to 1,361 square feet. The mixed-use property also features a 10,000-square-foot retail space on the ground floor, leased to local and national businesses. Amenities include a coffee bar, a rooftop fitness center, a pool, an outdoor kitchen, grilling stations and a pet park.

Downtown Atlanta is approximately 14 miles south of The Margo. The property places residents within walking distance of several shopping and dining options and provides easy access to Interstate 285. Arlington Memorial Park is roughly a mile away, while Oglethorpe University is less than 6 miles southeast.

Cushman & Wakefield arranged the transaction, with Steven Kennedy from Seyfarth Shaw working on behalf of the seller. Morris, Manning, and Martin represented Audubon. 

Future projects

Shortly before the sale, Kaplan Residential acquired two parcels for a total of roughly $11 million. One of them is located at 3960 Redan Road in Stone Mountain, Ga., and the other one at 9570 Dallas Acworth Highway in Dallas, Ga. The developer intends to add more than 400 units across build-to-rent communities in Stone Mountain, while the Dallas development will include ranch homes for the 55-plus active adults. 

According to Yardi Matrix, Atlanta is in the midst of an expansion as a result of consistent in-migration from higher-priced cities, leading to high demand for new supply. As of June, some 20,400 units across 89 properties were under development across the metro.