ATLANTA—Renaissance on Peachtree has a new owner. The 15-story, 228-unit independent and assisted living community in Atlanta’s Buckhead market sold for an undisclosed amount.

Senior Capital Advisors represented the seller, Retirement Corporation of America Partners. The firm also secured the buyer, a joint venture  between Formation Development Group and an affiliate of The Carlyle Group.

“This deal is very much in line with other large single asset transactions from the standpoint of it being a value-add play,” Bruce Gibson, principal of Senior Capital Advisors, tells GlobeSt.com. The buyers are planning a $7 million renovation of the common areas and residential units.

“The buyer is converting some independent living units to assisted living units,” Gibson says. “This is a common play when independent living vacancies in a building are greater than market. The new owner should do very well since most of the occupancy gains will translate directly to increased NOI.”

Located at 3755 Peachtree Rd. NE, Renaissance on Peachtree was built in 1987 and sits on 1.28 acres. Although the purchase price was not disclosed, Gibson says the asset traded at market value, allowing for some deferred maintenance. In a testament to the strength of the buyer and the demand in the market, it was literally two weeks from the start of marketing to the time there was a letter of intent.
 
“Atlanta is starting to see some assisted and memory care development in surrounding suburban secondary and tertiary submarkets,” Gibson says. “Independent living is still struggling a bit in Atlanta due to softness in the single family residential market.”