Slate to Buy Sun Belt Portfolio for $227M
The 1,600-unit deal is expected to close by the end of July.
Slate Asset Management has agreed to purchase a six-property, 1,600-unit multifamily portfolio for $226.5 million, or roughly $140,000 per unit. The assets are located in and around metro Atlanta, Phoenix and Tampa, Fla. Florida-based real estate investment firm ZMR Capital sold the assets, Bisnow reported.
The seller did not disclose the list of the assets. However, prior to the sale, ZMR Capital had eight assets across the three metros, according to Yardi Matrix. These eight properties are:
- the 118-unit Park at Peachtree Hills in urban Atlanta
- the 348-unit Upland Townhomes in suburban Atlanta
- the 240-unit Nightingale on 25th in metro Phoenix
- the 112-unit The Flats in metro Phoenix
- the 320-unit The Julia in metro Phoenix
- the 400-unit Hanley Place in metro Tampa
- the 285-unit Skye Oaks in metro Tampa
- the 982-unit Skye Reserve in metro Tampa
The garden-style communities are “well occupied” and situated near grocers and other service providers, Slate mentioned in a statement. King & Spalding advised the buyer in the transaction, which is scheduled to close by the end of this month.
Three dynamic Sun Belt markets
During the first six months of the year, Phoenix recorded $1.8 billion in multifamily investment sales, with a total of 32 properties changing hands, Yardi Matrix data shows. Meanwhile, Tampa saw 17 assets trading, totaling $836 million in sales. Atlanta has $1.2 billion in sales year-to-date.
On the heels of strong supply, many Sun Belt markets are seeing sluggish or negative year-over-year rent movement, even as demand remains relatively healthy. In the 12 months ending in May, rents were slightly up in Tampa (0.4 percent) and down in Atlanta (-1.0 percent) and Phoenix (-3.4 percent), according to a recent market report. However, as new properties are steadily filling up, rental rates are expected to improve.
