Franklin Street has facilitated the sale of two apartment properties in metro Atlanta among private buyers and sellers for a combined $14.4 million. Salem Chase Apartments in Conyers, Ga., and Delta Appletree Apartments in southwest Atlanta were both purchased by out-of-state investors, according to Franklin Street.
Salem Chase Apartments, a 64-unit community located at 50 Salem Chase Drive, sold for $5.65 million. The property includes one-, two-, and three-bedroom units and is on nearly 10 acres. The buyer, from New York, expects to see continued upside as the surrounding area improves.
“Secondary markets appeal to investors seeking a stronger yield, as they usually consist of properties outside of the investment criteria of many buyers, helping avoid greater competition,” said Jake Reid, a senior director for Franklin Street’s multifamily brokerage team in Atlanta. “The record pricing of this asset illustrates that buyers are willing to spend a premium to get a physically superior investment at a lower cap rate.”
SOUTHWEST ATLANTA PROPERTY FETCHES MORE THAN $8M
Delta Appletree Apartments, a 210-unit community at 2328 Campbellton Road in Atlanta, sold for $8.7 million. The transaction set a new pricing high for the southwest Atlanta submarket, according to Franklin Street, who represented the New Jersey-based seller and worked with the lender.
Delta Appletree is in a submarket with limited new construction and shrinking amounts of affordable housing, said Roger Schoerner, an associate in Franklin Street’s Atlanta office. “High construction costs create an economic barrier to entry to more affordable markets, driving increased investor demand to markets just beginning to witness the potential rent growth.”