Houston-based InterCapital Group LLC acquired a portfolio of three multifamily properties in Austell, Ga., and Douglasville, Ga., from New York-based Wafra Investment Advisory Group Inc. for $36 million.
The New York-based real estate lending, investment and advisory company Greystone & Co. Inc. reported Forest Glen Apartments in Austell, Ga. has 264 units on 26.4 acres and was acquired for $14.96 million. Home Ridge Apartments in Douglasville, Ga., has 200 units on 25 acres and was bought for $9.82 million while Stewart’s Mill Apartments, also in Douglasville, Ga., has 188 units on 18.8 acres and was acquired for $11.33 million.
Greystone provided $36.11 million in Fannie Mae DUS loans, which were originated by Rob Russell, for the acquisition. The loans carry a 10-year term with 3 years of interest-only and a low fixed interest rate.
Joe Mosley, executive managing director and head of agency lending at Greystone, said the Douglasville and Austell markets are bedroom communities to Atlanta and are in close proximity to major employment areas and close to various shopping, dining and entertainment options.
“According to REIS, the Douglas County submarket has a current inventory of 6,800 units in over 30 communities and the Cumberand/Galleria submarket has a current inventory of over 48,000 units in over 220 communities,” Mosley said. “Both submarkets have experienced increasing occupancy and rental growth over the past several years and over the long-term, both submarkets should see continued expansion and demonstrate strong demand for apartment properties. Greystone follows its clients and lends in these markets because of the solid market fundamentals and the future upside potential.”
Ricky Jones, investment associate in the Atlanta office of the commercial real estate services firm Franklin Street, said the activity level in Atlanta has increased dramatically which has caused capital rates to become more compressed.
“Because of that, we are seeing some investors look outside Atlanta’s core in search of more attractive returns,” Jones said. “Secondary and tertiary markets like Savannah, Augusta, Macon, Columbus, have been the focus of many investors simply due to the fact that favorable returns are still achievable.”