ATLANTA—Multifamily investors are getting creative with acquisitions in key markets. In a joint venture with Harbert Management Corporation, Cortland Partners has acquired a 644-unit multifamily project in Roswell for $38.75 million.

Centennial Ridge is an institutionally-developed multifamily commuting sitting on 83 acres of Roswell land. The multifamily complex is on Holcomb Bridge Road, a popular thoroughfare in an affluent Atlanta corridor. Cortland and Harbert plan to spend $10.6 million to renovate and upgrade the multifamily property.

“Cortland’s acquisition price represents a discount of approximately 30% to the previous owner’s cost basis,” Paul Wrights, an investment manager at Cortland Partners, tells GlobeSt.com. “Centennial’s rents and occupancy are currently well-below comparable nearby properties, which command occupancies of 95% or more with monthly rents at $100 to $200 per unit higher, presenting attractive upside opportunity.”

Wrights also pointed to the Roswell area’s lack of multifamily zoned land, strong income demographics, high single-family home prices, excellent schools, and nearby major employment centers as factors that drive positive supply and demand fundamentals. The firm reports an average occupancy at class A and B properties near Centennial is about 95% and average monthly rents are approximately $875 per unit.

This acquisition was financed with US Bank. Wrights says the capital market in the area has been active in the last 12 months. He points to Seven Pines, which is located less than one mile from Centennial, as an example. Seven Pines traded for approximately $65,000 per unit to Wood Partners in July 2011. Jefferson at Champions Parkway, also located near Centennial, is currently under contract at a sale price of about $71,000 per unit. Since 2002, he reports, development in North Fulton has averaged the addition of only 106 apartment units annually while the population has added 150,000 residents annually.

In order to compete in the local multifamily market, Cortland will upgrade and reposition the asset. Renovations will include amenity improvements, energy efficiency upgrades and renovated kitchens. Cortland also plans to redevelop the leasing center and separate clubhouse. Once complete, the property will be rebranded as Park 83.

Since mid-2010 Cortland Partners has added 28 apartment communities to its portfolio through acquisition, note purchase, or development. Wrights says Cortland is still in the market for new multifamily opportunities.

“We will continue to pursue a disciplined approach to growth, focusing on markets with attractive fundamentals and growth prospects, in particular, Atlanta, Charlotte, Dallas, Northern and Central Florida, and other targeted markets throughout the South and Mid-Atlantic,” Wrights says. “With this latest acquisition, Cortland’s multifamily holdings stand at 8,666 units. We are planning to add an additional 5,000 units by the end of the year, either through opportunistic acquisition or development.”