TerraCap Buys Atlanta Apartments

Barings provided a three-year loan for the purchase and renovation of the property.

Eleven 85. Image courtesy of TerraCap Management LLC

TerraCap Management, a privately held investment firm, has acquired Eleven 85, a 288-unit, Class A apartment community in Atlanta that was built in 2014 and 93.1 percent occupied at the time of sale.

The price was not disclosed. The seller of the property was Redwood Capital Group, according to Yardi Matrix. The property changed hands most recently in December 2014, when Redwood acquired the asset at 1185 Collier Road NW, for approximately $65.7 million, Yardi Matrix reported.

Barings provided a bridge loan to TerraCap Management for the acquisition and renovations at Eleven 85 but neither entity disclosed the amount of the loan. Barings, a global real estate investment manager with more than $27.8 billion in its real estate debt platform, said the financing has a three-year term and includes future funding to complete unit and amenity renovations.

David Gutting of Newmark represented the seller in the transaction. First Communities Management was hired as property manager.

Matt Stewart, partner & director of asset management at the firm, said in a prepared statement TerraCap is in a neighborhood that the firm has been studying closely since 2017. Located in Atlanta’s Upper Westside, just off I-75, the property provides connectivity to employers throughout the Atlanta metro and direct access to Buckhead and Midtown, where there are a significant number of new jobs paying well above the current median income for the area. Stewart noted the multifamily property is located in an area with single-family homes currently averaging $650,000 that has walkable neighborhood amenities.

Eleven 85 has one-, two- and three-bedroom units ranging in size from 594 to 1,302 square feet with an average of 964 square feet. Units feature modern design elements including built-in Bluetooth audio systems, energy-efficient appliances, walk-in closets, washer-dryers in all units and private balconies or patios in select units. Community amenities include a fitness center, business center, clubhouse, swimming pool, outdoor kitchen with grilling stations, a fire pit, children’s playground and bocce ball court. There are more than 500 parking spaces on the nearly 9-acre property and additional storage is available for an extra fee.

Recent Deals

Last month, TerraCap acquired The Lex at Brier Creek, a 346-unit community in Morrisville, N.C., a suburb in the Raleigh-Durham metro. The price was not disclosed but Yardi Matrix data identified the previous owner as Kettler. It was the firm’s second multifamily acquisition in the Raleigh-Durham metro this year. In March, TerraCap entered the market when it acquired Amberwood at Lochmere, a 340-unit, Class A community in Cary, N.C.

The Eleven 85 financing expands Barings real estate debt platform, which invests in loans secured by institutional-quality commercial real estate in strategic locations in North America and Europe. It also adds to Barings’ growing multifamily portfolio. In June, a joint venture of Barings and MRP Realty received $69.4 million in financing for Phase III of Washington Gateway, a 254-unit, Class A community branded as The 202, in Washington, D.C. In May, an affiliate of Barings acquired Flats on First, a newly constructed 136-unit, Class A multifamily property in Cambridge, Mass., from Urban Spaces for $103 million. Located at 21 Charles St., the property also includes 14,800 square feet of ground-floor commercial space.

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