Spaxel Pays $45M for Atlanta Workforce Housing
- Apr 22, 2021
Spaxel has paid $45 million for The Hills at East Cobb, a 266-unit workforce housing property in Marietta, Ga., with $16.4 million in limited partner equity from Sound Mark Partners.
According to Yardi Matrix data, the previous owner was Aerial Development Group, which purchased the Class B property in 2018 for $35.1 million. Avison Young arranged the joint equity partnership.
The acquisition is part of Spaxel’s strategy aimed at value-add and new construction multifamily opportunities, with a focus on affordable and moderate-income housing. Managing Partner Granit Gjonbalaj said, in a prepared statement, that this is the first of many transactions in the region.
The Hills at East Cobb sold for $125.6 per square foot. Yardi Matrix data shows only two other workforce housing properties changed hands in suburban Atlanta in the first quarter of 2021. The same private owner sold the 128-unit Centerview Terrace in Smyrna, Ga., and the 216-unit Brookview in Douglasville, Ga., for an average $117.7 per square foot.
A value-add property
Situated on more than 24 acres at 1716 Terrell Mill Road, the community comprises 11 two-story buildings completed in 1970. The unit mix features one-, two- and three-bedroom floorplans averaging 1,342 square feet. Amenities include a swimming pool, dog park, fitness center, picnic area and clubhouse.
The property is 14 miles northwest of downtown Atlanta and 6 miles southeast of downtown Marietta, equidistant from Interstate 75 and U.S. Route 41. There are numerous shopping venues nearby and the new Atlanta Braves stadium is roughly 2 miles south.
John Kevill, principal & president of Avison Young U.S. Capital Markets, working with Principals Wes Boatwright, Dean Sands and Casey Keitchen, led the team securing the equity partner for the deal.