TerraCap Buys Suburban ATL Portfolio for $116M

The 1,100-unit portfolio is comprised of four assets situated in Atlanta's northern suburbs. CBRE facilitated TerraCap's acquisition by arranging a four-year loan provided by Principal Real Estate Investors.

TerraCap Management acquired a four-property portfolio of apartment communities situated in Atlanta’s suburbs for $116 million. The assets were sold by NexPoint Residential Trust. The acquisition was facilitated by a $74.2 million, four-year, floating rate loan obtained by CBRE on behalf of TerraCap and provided by Principal Real Estate Investors.

This portfolio aligns well with our investment strategy and portfolio construction for our fourth land, TerraCap Partners IV LP. We feel this acquisition will bring solid yield and value to our investors given its geographic density in growth markets and the opportunity.to add value through strategic updates,” said Stephen Hagenbuckle, founder & managing partner at TerraCap Management, in a prepared statement.

Property highlights

  • The Knolls, comprising 312 units, is situated at 1675 Roswell Road in Marietta, Ga. Built in 1985, it offers 156 one-bedroom, 128 two-bedroom and 28 three-bedroom floor plans, with unit sizes ranging from 715 to 1425 square feet. Common amenities include a fitness center, tennis court, swimming pool, and laundry facilities. Nearby, Interstate 265 offers access to the outer Atlanta metropolitan area, while downtown Atlanta is a 25-minute car ride away via I-75. Occupancy is at 97 percent, according to Yardi Matrix.
  • The Crossings at Holcomb Bridge comprises 268 units in total. It is located at 100 Creekside Way, in Roswell, Ga., and has 96 one-bedroom, 142 two-bedroom and 30 three-bedroom units, from 715 to 1.500 square feet in size. It includes a tennis court, swimming pool, and laundry facilities as common amenities. Nearby, Holcomb Bridge Road has plenty of shopping and dining options. Downtown Atlanta can be reached in approximately 26 minutes. According to Yardi Matrix, this property is 95 percent occupied.
  • The Crossings is in Marietta, Ga., at 875 Franklin Road. It offers 190 one-bedroom, 158 two-bedroom and 30 three-bedroom units. The sizes range from 715 to 1,425 square feet, while monthly rent averages $891, according to Yardi Matrix. It also features a tennis court, swimming pool and laundry facilities to its residents. Kennesaw State University, Marietta Campus, is located 10 minutes away from the property. I-75 is near, putting downtown Atlanta 25 minutes away by car.
  • The Arbors is a 140-unit apartment community located at 100 Arbor Circle in Tucker, Ga. It comprises 72 one-bedroom, 52 two-bedroom and 16 three-bedroom floor plans. Yardi Matrix reports a current occupancy of 91 percent and an average monthly rent of $1,033. The property is situated right next to a major retail area, along Lawrenceville Highway. Downtown Atlanta is a 30-minute car ride from the property.

CBRE Capital Markets’ Debt & Structured Finance team, comprised of Vice Presidents C.J. Kelly and Porter MacDonald, obtained the acquisition funds. JLL’s Managing Directors David Gutting and Derrick Bloom as well as Vice President Josh Magaro represented NexPoint Residential Trust.

Images courtesy of Yardi Matrix