Praxis Lands 1st Atlanta Asset
The San Francisco-based company entered acquired the 198-unit Birch Run Apartments in Clarkston, Ga. The property will soon undergo a $3 million renovation process.
Praxis Capital Inc. purchased Birch Run Apartments, a 198-unit Class B asset in Clarkston, Ga., a suburb of Atlanta. This is the company’s first acquisition in the metro. According to Yardi Matrix data, Marquis Investments is the former owner of the asset, after acquiring it for $7 million back in 2014 from Arbor Realty Trust. The property will be managed by Praxis’ wholly-owned subsidiary, PM Residential Management LLC.
Located at 1204 Brockett Road on more than 10 acres, the property is in close proximity to Interstate 285 and within a 20-minute drive from downtown Atlanta. Built in 1983, the 23-building community features two-bedroom units ranging from 1,070 to 1,245 square feet. Amenities include a tennis court, a swimming pool and 450 parking spaces.
Praxis plans to invest $3 million to renovate and upgrade the property. “Atlanta is one of (the) top performing apartment markets in the country and Clarkston has one of the lowest vacancy rates in the metro, making this an ideal value-add play. We’ve had tremendous success employing similar strategies with properties in other states and this property holds promise for excellent cash flow with upside potential,” said Praxis Capital President Brian Burke, in a prepared statement.
Praxis seeks to build a large portfolio of Class B and C workforce housing. The company intends to grow to by approximately 2,000 units in this market as well as expand its relationships with family office and institutional joint-venture equity sources. Praxis currently owns properties in five states.
Image courtesy of Praxis Capital