Zavala Capital Group has purchased the 96-unit Creekside Apartment Homes, a value-add Atlanta community, for $9.7 million. The acquisition was funded through a $7.2 million mortgage held by Arbor Realty Trust, public records show. The seller, George Thibodeau, had purchased the asset for $6 million in mid-2006, according to Yardi Matrix. The new owner plans to increase the property’s value through management changes and capital improvements. Franklin Street’s Jake Reid and Roger Schoerner represented the seller in the transaction.
Located at 3637 Pleasantdale Road in the city’s East Chamblee submarket, the garden-style community’s eight buildings are positioned within two miles of the intersection of interstates 85 and 285, 16 miles from downtown Atlanta. The property, which was constructed in 2000, offers residents a mix of one- and two-bedroom apartments, ranging in size between 1,000 and 1,200 square feet.
“Existing rental rates at the property were well below the market for a superior floor plan,” said Reid, senior director of multifamily investment sales for Franklin Street, in a prepared statement. “We expect that the new owner will be able to quickly increase revenue through strategic management and cosmetic improvements. The surrounding sub-market has seen a sharp increase in demand driven by a lack of new product and strong economic drivers like Children’s Healthcare and CDC expansions. We continue to see strong interest in properties along the Interstate 85 corridor given Atlanta is such a strong transportation hub for the southeast.”
Image courtesy of Franklin Street