Prospect Capital REIT Makes Profitable Exit in Georgia

by Evelina Croitoru

Abbington Pointe

Marrietta, Ga.—Prospect Capital Corp., a business development company focusing on lending to and investing in private businesses, has announced the sale of Abbington Pointe community in Marrietta, Ga. The property was sold through Prospect’s portfolio company National Property REIT Corp. Abbington Pointe traded for $37 million, achieving a 24 percent internal rate of return and 2.1 times cash on cash return on this investment. The company purchased the property back in 2012 in a co-investment joint venture with Providence Management Company LLC, for $23 million, according to Yardi Matrix.

“The Abbington realization demonstrates the strong performance of NPRC’s multi-family-focused real estate portfolio, which has delivered net operating income growth and increasing yields as well as capital gains. NPRC continues to benefit from demographic trends driving higher occupancies and rent growth in the apartment sector. We look forward to selectively monetizing other properties in NPRC’s portfolio through supplemental financing dividend recapitalizations and sales,” Ted Fowler, managing director of Prospect Capital Management LP, said in prepared remarks.

Located at 1751 Terrell Mill Road, SE., the 408-unit apartment community features one-, two- and three- bedroom units and offers a fitness center, business center, clubhouse and 800 parking stalls, among other amenities. According to Yardi Matrix, the property is subject to a $15 million loan originated in 2012, which matures in 2023.

Image via Google Maps, user:Abbington Pointe