ATLANTA—Still looking for distressed or REO opportunities in the Southeast multifamily market? They may be few and far between but deals are getting done.
The latest example is Norstar Wingate, a multifamily community that just sold for $3.4 million. The sales price represents $16,113 per apartment unit.
Jake Reid and Ricky Jones of Franklin Street represented the seller, a local investor. The buyer, AML GA 1001, a Florida investor group, plans to reposition the property. AML will hire new management, address deferred maintenance, and complete general capital improvements to turn around the multifamily asset.
“There are few distressed or REO properties that haven’t worked their way through this market,” Reid tells GlobeSt.com. “Because most bank-owned properties sold prior to 2014, there aren’t many comparable deals on the market and stabilized properties in the area are fetching values at double the amount. Many who purchase these assets are focusing heavily on upfront due diligence so they can hit the ground running with a capital expenditure plan after closing.”
Located at 4735 Courtney Drive in Forest Park, GA, the 211-unit multifamily property spans three buildings developed in 1964 and 1967. Norstar Wingate sits near Clayton State University and Fort Gillem in Clayton County, which is home to Georgia’s largest employer—Hartsfield-Jackson International Airport.
“Norstar Wingate should experience gains through improvements in operations and overall area improvements,” Reid says. “The redevelopment of Fort Gillem is likely to positively impact this asset and many others in the Forest Park area.”