"The owner needed to sell the asset within a relatively shortperiod of time," says Joshua Goldfarb, managing director withSoutheast Apartment Partners. "As such, the sale was distressed anda price discount was given," he explains about the price.

|

The property is 79% occupied with amenities including tenniscourts, a clubhouse and two pools. The buyer plans to spend $2.5million to improve the property, according to Bob Mascaro, vicepresident of acquisitions for the southeast region of GFI.

|

"The previous ownership had foreclosed on the property and hadleft it to operate on its own," he explains. "We plan to cut thetrees back, fix the landscaping and entrance gate, as well asrenovate the clubhouse. We will take all of the down units andbring them back up, do some interior renovations and get theproperty leased up with quality residents."

|

MAscaro says GFI may be in a good position to sell the complexin two to three years. A profit is sure to be had with the lowprice paid for such a valuable asset, Southeast Apartment Partnersdirectors agree.

|

"Selling a 1984 built property at $25,000 per unit will clearlyraise some eyebrows," says Marc Robinson, managing director withthe firm. "Between the tight credit markets, rising joblessness,increasing oil prices and flat economic outlook, the localperception of Class C apartments is fragile at best." The sale mayrepresent the beginning of the recalibration of values in class Cassets in Atlanta, adds Goldfarb.

|

"Based on our pipeline, we anticipate more sales to occur undersimilar circumstances. The lag effect of real estate prices willhit soon, following the slowdown seen in our national economy," hesays.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.