ATLANTA–Aspen Companies, an affiliate of Treetop Development, just went on a multifamily buying frenzy. The company grabbed six multifamily Project-Based Section 8 properties in Georgia and South Carolina for a mere $15.5 million.
“This transaction offered us an ideal opportunity to acquire six well-maintained properties that will yield strong returns for Aspen in today’s competitive marketplace,” John VanMetre, Aspen’s director of property management, tells GlobeSt.com. “We will follow our hands-on management approach at each of the properties, while collaborating with government agencies to ensure proactive customer service and the highest level of consideration for our residents’ needs.”
In each of the six properties, the apartments are subsidized under housing assistance payment contracts provided by The US Department of Housing and Urban Development. The portfolio offers 429 units in total, including one in Vadalia, GA, one in Savannah, GA and four across South Carolina.
With these acquisitions, Aspen is working to generate a steady, predictable revenue stream by leveraging the Section 8 status of the properties. Monthly rents are at the going market rates in each city. The properties are also within driving distance of one another, which gives Aspen management efficiencies and economies of scale.
The acquisition of these assets represent a growing trend for multifamily investors searching in secondary and tertiary markets is not only chasing yield but product that appeals to higher-income renters. So says Jake Reid, senior director of Atlanta multifamily investment sales for Franklin Street.
“Investors are beginning to recognize that higher income tenants are choosing to rent versus own and that this trend is not limited to major metropolitan areas,” Reid tells GlobeSt.com. “They are also realizing the importance of not only investing in quality product but also the proximity to restaurants and shopping in suburban downtown markets.”
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