ATLANTA-Gables Residential has acquired six Century Center office buildings on 7.67 acres for $9.53 million with plans to demolish them and build 355 apartment units.

Matt Hawkins and Ron Willingham, of Cushman & Wakefield, represented the seller, Highwoods Realty, in the transaction.

Demolition of the office buildings, which are located near Interstate 85 and Clairmont Road, is now under way. The new apartment building will complement Gables' other properties in the area, including Gables Sugarloaf in Duluth.

With a strong economy and expanding population, market conditions are favorable for the apartment market, according to a Marcus & Millichap apartment market report for Atlanta.

Among factors contributing to strong market conditions are limited new construction in 2007. Developers will deliver 3,000 units in Atlanta in 2007, down from 4,600 units in 2006. Asking rents are forecast to increase 2.8% to $855 per month, while effective rents gain 3.7% to $765 per month in 2007, the report states.

"Strong tenant demand is pushing down vacancies and prompting rent increases, especially inside the beltway, particularly along the Peachtree Street corridor between Midtown and Buckhead," says Marcus & Millichap's Atlanta office regional manager John Leonard. "High rents in these markets are producing a spillover into more affordable neighboring communities."