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Atlanta Value-Add Portfolio Sells for $42M

Lenox Apartments Portfolio 457x296
Published: Aug 28, 2019
Excerpted from Multi-Housing News story.

Tenth Street Ventures and Braden Fellman Group have acquired 13 properties from three sellers in the Morningside/Lenox Park neighborhood in Atlanta for approximately $42 million and will create one unified garden-style community with 335 units that will be rebranded The Piet.

The properties span 12.5 acres and will be connected with walking trails. Community amenities will also include two pools, five dog parks, more than a dozen grill stations, basketball courts, bocce ball courts and putting greens. Artist Chastain Bernard, using the abstract neoplasticism style made famous by Piet Mondrian with black, white and primary colors, will paint the buildings’ exteriors to unify the properties.

The joint venture partners expect to invest about $25,000 per unit in interior and exterior renovations, Brian McCarthy, TSV principal, told Multi-Housing News. Most of the money will be spent on the interiors to modernize and upgrade the1960s- and 1970s-era buildings. Upgrades will include quartz countertops, all new cabinets, new flooring and laundry hookups. The units will have updated technology, including smart locks, doors and thermostats. All the renovations are expected to complete within 18 months.

Aimed at working-class renters, McCarthy said the goal will be to keep the rents under $1,400 or as he put it, “market-rate affordability.”

McCarthy said the joint venture acquired a 117-unit property nearly a year ago and began the process of adding the other nearby properties to create the larger portfolio. They closed on the last property about 30 days ago.

Jake Reid, Chad DeFoor and Roger Schoerner of Franklin Street’s Atlanta multifamily investments sales team brokered the deal. Wesley Turner with Krevolin & Horst was the real estate attorney for the deal.

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Credit: Gail Kalinoski
Source: Multi-Housing News