Praxis Capital Picks Up 539 Units in Greater Atlanta

The company acquired two neighboring communities in Stone Mountain, Ga., for a combined $40.4 million. Berkadia provided acquisition financing.
1401 North Hairston Road. Image courtesy of Yardi Matrix

Praxis Capital has purchased a pair of neighboring multifamily properties with a combined 539 units in Stone Mountain, Ga., for a total price of $40.4 million.

The real estate private equity investment firm purchased Ashland Lakeview Apartments, a 255-unit community, at 200 Summit Lake Drive for $18.4 million; and The Residences at Mountain Lake Apartments, a 284-unit property at 1401 North Hairston Road for $21.9 million. Yardi Matrix data indicates that AH Capital and Napali Capital sold the two properties, respectively.

The company is rebranding the two communities as Lakeview Apartment Homes and operating them as one property. Praxis Capital now has a total of 1,353 units in the greater Atlanta market and an appetite for further growth in the region, according to Bob Dreher, senior vice president of investor relations.

“We’re a value-add shop, focused on Class B and C workforce housing properties in strong submarkets with some potential supply constraints, while ever vigilant of additional supply that might be coming to the fore,” Dreher told Multi-Housing News. “The submarkets in which we’re operating offer those.”

Securing loans

Berkadia announced that it had secured a total of $37.5 million in acquisition financing for the assets: $17.4 million and $20.2 million in financing for Ashland Lakeview Apartments and The Residences at Mountain Lake Apartments, respectively.

Built in 1979, Ashland Lakeview Apartments consists of 27 two-story buildings, while the neighboring asset was built in 1971 and comprises 23 two-story buildings. The complementary properties, located less than 15 miles from downtown Atlanta, are both nearly 97 percent occupied.

Praxis Capital expanded its Atlanta presence in August of last year by purchasing the 200-unit Flint River Apartment Homes from Crown Bay Group for $13.1 million, after entering the market a year prior.