The RADCO Cos. has sold Ashford Embry Hills, a 161-unit multifamily property in Atlanta, for $24.3 million to Strategic Holdings. The new owner is rebranding the asset as the Sierra Hills Apartments and plans to invest $1 million into capital improvements.
Strategic Holdings funded the acquisition with $19.9 million in financing from Freddie Mac, secured by Berkadia. The 10-year loan features a variable interest rate and includes five years of interest-only followed by a 30-year amortization period. The mortgage has an 80 percent loan-to-value ratio.
“Strategic Holdings has been focused on growing their Atlanta portfolio which has a concentration in the North Dekalb submarket,” said Berkadia Associate Director Jeremy Lynch, who secured the acquisition financing on the buyer’s behalf, in a prepared statement. “The proven value-add program implemented by the seller, coupled with Strategic Holding’s utilization of the Freddie Mac green program will enable them to continue the value-add program and improve energy efficiencies.”
The seller picked up the property from the TVO Groupe in early 2014 for $9.4 million, according to Yardi Matrix data. TVO had, in turn, acquired the asset in 1998 for $10.1 million. In late 2017, RADCO landed an even larger Atlanta multifamily sale of a 654-unit community.
Strategically placed community
Located at 3207 Henderson Mill Road in the Tucker/Stone Mountain submarket, Sierra Hills’ 13 two-story buildings are situated along the Perimeter near its intersection with Interstate 85. Additionally, a city bus route runs nearby, ensuring the community is well-connected to downtown Atlanta and the wider metro area.
The community contains a mix of two-, three- and four-bedroom units, ranging in size from 1,200 to 2,207 square feet. According to the property’s website, rents start at $1,390 per month. On-site amenities include a business center, a clubhouse, a fitness center, a swimming pool, and a tennis court.
Images courtesy of Berkadia