Milestone Acquires 346-Unit Apartment in Atlanta
- May 31, 2013
Atlanta—Ontario-based Milestone Apartments REIT has added a new community to its portfolio of 52 assets located in Southern states thanks to its acquisition of Century Windermere. The 346-unit, Class A community is located in the Alpharetta submarket of Atlanta and was purchased for $46 million, which represents an initial cap rate of 6.36 percent, just a hair over the 6.21 percent average cap rate RCA reports for the city over the past year. The purchase, which is expected to close by June 30, will increase the portion of Milestone units in the Atlanta MSA from 4.34 percent to 6.26 percent of its portfolio.
“Century Windermere is an attractive asset that complements our established portfolio of high-quality multifamily properties serving mid-market renters in the US Southeast and Southwest,” says Robert Landin, CEO of Milestone Apartments REIT. “The property has a long-term trend of consistently high occupancy and steady rent growth.”
Built in 2001, the property is currently 95 percent occupied, likely due in part to the community’s strong amenity package that includes a swimming pool with sun decks and cabana, poolside Wi-Fi, a heated spa, business center, fitness center, lighted tennis court, detached garages, and a clubhouse with a social room.
Marcus & Millichap sells a 72-unit asset in Saint Paul
Saint Paul, Minn.—Marcus & Millichap Real Estate Investment Services has secured a buyer for Highlands on Graham, a 72-unit community located in Saint Paul. A partnership acquired the property for $8.3 million, which was equal to the existing mortgage amount.
Highlands on Graham is located at 1910 & 1920 Graham Avenue. The sale also included 1925 Norfolk Avenue, formerly a 104-bed nursing home, as well as 1413 Sue Street, a single-family home that was included in the sale for land value.
Gebroe-Hammer completes Pennsylvania multifamily sales totaling $4.94M
Bala Cynwyd, Pa.—Gebroe-Hammer Associates has orchestrated the sale of two multifamily properties in southeastern Pennsylvania, totaling a combined 51 units that sold for $4.94 million. The Livingston, N.J.-based firm’s Managing Director Joseph Brecher and Senior Vice President Eli Rosen represented the sellers and procured the buyers in both transactions.
In the larger of the two transactions, the 37-unit Edge Hill Court at 25 Old Lancaster Rd. in Bala Cynwyd, Pa., traded for $4.05 million, equating to more than $109,400 per unit. Located in the heart of suburban Philadelphia’s historical Main Line region, the property consists of three, three-story brick buildings with five studio, 27 one-bedroom and five two-bedroom apartments. St. Joseph’s University and shopping and dining destinations are nearby. Units offer hardwood floors, screened porches, brick-enclosed patios, sun rooms and keyed entry doors with an intercom system.
“Edge Hill Court provides a value-add opportunity resulting from upgraded kitchens and baths that have netted a premium in asking rents,” Brecher says.
In the second transaction, the 14-unit 41North Delaware Ave. in Yardley, Pa., has been sold for $890,000. Located on the Delaware River in Lower Bucks County, the property is close to SEPTA Regional Yardley station with service to Philadelphia, and provides easy access to I-95. It consists of 14 two-bedroom units, provides on-site parking and has on-premises laundry facilities.
“Multifamily assets continue to provide one of the strongest commercial real estate investment opportunities in southeastern Pennsylvania,” Brecher says. “Both of these offerings attracted a great deal of interest. With its location between New York and Washington, D.C., this bi-state Pennsylvania/New Jersey region continues to experience high tenant demand and occupancy rates, which is driving investor interest.”