Atlanta is Hot, Boston Capital Knows It

Boston Capital buys 294 units from MTS in a JLL-brokered sale; ARA completes an 80-unit sale in Fort Worth; and NorthMarq arranges a $28.5 million refinancing for a California community.

Wesley at WinwardAlpharetta, Ga.—Supported by a strong office market, the Atlanta apartment sector has been a top performer in recent quarters. Boston Capital has taken note and expanded its portfolio with the acquisition of Wesley at Winward in the Atlanta suburb of Alpharetta. The 294-unit community was acquired from MTS Realty Group in a sale brokered by JLL.

“There is limited competition in this submarket and an incredible opportunity for the new owner to capitalize on a value-add property,” says Derrick Bloom, who led the transaction with fellow JLL Managing Director David Gutting.

A quick look at apartment sector performance metrics makes it easy to see why Boston Capital dropped $35.5 million on the asset. While there are roughly 12,700 units under construction in Atlanta, occupancy as of Q2 2014 stood at 94.3 percent. Rent growth over a 12-month period stood at 4.1 percent as of Q2 2014 as well.

The asset itself isn’t too shabby either. Units feature custom interiors, large balconies and open kitchen space. Common amenities include two resort-style swimming pools, a fitness center, two tennis courts, two natural on-site lakes, a dog park, playground and an excellent location to boot.

“Wesley At Windward’s unparalleled location near Avalon’s new $600 million mixed-use development and downtown Alpharetta’s $31 million redevelopment caters exactly to what today’s renters are seeking: an environment where they can live by their work and be conveniently close to retail, shopping and dining,” Gutting adds.

ARA brokers 80-unit sale near Fort Worth

Dallas - River RanchRiver Oaks, Texas—ARA has brokered the sale of River Ranch, an 80-unit Class B, value-add property located in River Oaks about a 10 minute drive from the Fort Worth CBD. River Ranch was completed in 1985, features market-leading interior upgrades and faces limited competition within its submarket. Jakob Andersen, Brian O’Boyle, Jr. and Brian Murphy led the exclusive marketing effort of the property on behalf of the seller, entities controlled by Robert Gunby and Roger Gault.

Gault and Gunby pursue value-add investment and development opportunities in the multifamily, hotel and retail property classes and currently have multiple projects underway in all of the above asset groups. This is the second property the two have sold through ARA just this year; a 104-unit multifamily property located in the suburb of Grand Prairie, Texas, traded hands in August.

River Ranch was acquired for an undisclosed price by Bozeman, Mont.-based Southwest Montana Properties LLC. Southwest Montana Properties specializes in multifamily real estate investment in emerging markets throughout the United States and Canada. This is their first acquisition in the Fort Worth, Texas, suburb of River Oaks.

“We are pleased to advance our focused effort on acquiring undervalued, stabilized assets in strategic Texas markets with the acquisition of River Ranch,” says Chad Laird, managing director of Southwest Montana Properties. “This is a solid asset in a submarket with high apartment occupancy and limited new supply. We expect River Ranch to continue to benefit from strong demand for a central living option priced lower than many multifamily communities in nearby submarkets.”

NorthMarq arranges $28.5M refinance in California

Folsom, Calif.— Michael T. Elmore, executive vice president/managing director of NorthMarq Capital’s  Los Angeles based regional office finalized the $28.5 million refinance of Fairmont at Willow Creek, a 260-unit multifamily property located at 200 S. Lexington Dr. in Folsom, Calif. The transaction was structured with a 10-year interest-only term. NorthMarq arranged financing for the CWS Capital Partners through its Fannie Mae DUS lender.

Community amenities include a swimming pool and spa, playground, fitness center and business center. Apartments include custom kitchens, cable/satellite availability, private patios and balconies, fireplaces and a full-size washer and dryer in every unit.