ATLANTA-Hindered by two separate on-site fires and a land-use restriction contract, locally based American Opportunity Fund finally sold its two apartment communities totaling 330 units for a combined $14.95 million or an average $45,303 per unit. The properties were on the market 15 months. Marc Robinson and Josh Goldfarb, of locally based Southeast Apartment Partners, represented the nonprofit American Opportunity Fund and also found the two buyers.

Mark Nelkin of locally based Majestic Management Co. bought the 150-unit, 28-year-old Regency Woods I at 3160 Buford Highway for $5.95 million or $39,667 per unit. KLA Properties, a locally based investment group headed by Kelly Lindsley, paid $9 million, or $50,000 per unit, for the 180-unit, 27-year-old Regency Woods II at 1478 Briarwood Rd. The per-unit prices of both properties were "far below" replacement cost, Robinson tells GlobeSt.com.

"The deals took a long time to get closed for a couple of factors," Robinson says. "Regency Woods II had two major separate fires while under contract. Both properties [also] had Land Use Restriction agreements that had to be removed prior to sale." The land-use contracts were related to the previous bond financing on the property.

The deals were done at this time because of "the softness of the apartment market," Goldfarb tells GlobeSt.com. "The properties had not been performing well and were trending worse. The seller, a nonprofit, needed to sell them." Regency Woods I was 70% occupied at closing; Regency Woods II, 90%.

Robinson says Majestic Management plans to renovate Regency Woods I and continue to operate the property as an apartment community. However, Lindsley is considering other options for Regency Woods II. "His immediate plan is to continue to run it as an apartment community while he carried out a renovation that includes about $40,000 per unit" or an estimated total of $6 million, Robinson tells GlobeSt.com. Lindsley recently completed a condo conversion at the 202-unit Carlyle Heights at 1445 Monroe Dr. in Atlanta.

The immediate neighborhood around Regency Woods II on Briarwood Road "has experienced a great deal of redevelopment activity with the demolition of three existing apartment communities that are being demolished by developers who are planning to construct new for-sale townhomes," Robinson says.

The broker tells GlobeSt.com "both properties are ripe for conversion. The properties had offers from both condo converters and apartment buyers that were in the same price range." Robinson says "it is possible that both buyers may elect to convert the properties in the future."