KENNESAW, GA-Boca Raton, FL-based Silver Cos. and Richmond, VA-based McCann Realty Partners LLC have acquired the 300-unit Shiloh Valley Overlook apartment complex at 2100 Shiloh Valley Dr. for $28 million. The deal is part of a broader plan to acquire $150 million in apartment communities in 2007.

Shiloh Valley Overlook is located in the Town Center submarket of Atlanta and will be managed by RAM Partners LLC. The acquisition was funded in part by a 10-year fixed rate loan with a rate of 5.75% originated by Lehman Brothers Bank, FSB.

Fleet Wallace, of McCann Realty Partners, tells GlobeSt.com that the property was acquired because it is a high-quality asset in a strong location. "The supply of apartment buildings in the Town Center area has been somewhat constrained due to the lack of available land for new construction," Wallace says.

The rent roll for the complex currently has about 15% concessions. "We anticipate being able to grow net operating income by reducing the concessions and by the overall recovery of the market," Wallace says.

The acquisition was the first of a new apartment fund called Silver-McCann Apartment Group II, LP, launched by Silver Capital, a division of Silver Cos., and McCann Realty Partners. "Shiloh Valley Overlook in Atlanta's Northern Cobb County is an ideal first acquisition for our second apartment fund. We were able to attractively leverage this class A community with a long-term fixed rate conduit loan at 5.75%," says Silver Capital CEO Larry Silver.

Silver-McCann Apartment Group was organized in April 2005 to acquire apartment communities in the Mid-Atlantic and Southeast, particularly Atlanta; Charlotte, NC; Raleigh, NC; Richmond, VA; Washington, DC; and Baltimore. The initial fund reached its stated objective of acquiring an apartment portfolio valued at approximately $100 million in the first 18 months of the partnership.

"[Shiloh Valley Overlook] is the fifth acquisition that Silver-McCann has made over the last seven months," Silver says. "While it is a very competitive market for investments, we are very encouraged by the success that we are having accessing apartment acquisitions that meet our funds' objectives."