ATLANTA—GoldOller Real Estate Investments just snapped up six multifamily communities with more than 1,200 units in metropolitan Atlanta. PSPIB, a Canadian Pension fund, sold the Atlanta multifamily portfolio to Philadelphia-based GoldOller for $87.25 million.

"We are very excited to place a stake in the Atlanta market," says Richard Oller, chairman of GoldOller. "We believe that Atlanta has rebounded very nicely and is now poised for very significant rental growth. The assets we acquired, all located in the Southside Atlanta submarkets, are expected to yield attractive cash on cash returns before any value enhancements. Each property is a well occupied, gated community, of 2000 vintage, with attractive amenities.”

The properties in the Atlanta multifamily portfolio are Meadow View, 240 units and Meadow Springs, 216 units, both located in College Park, GA; Peachtree Landing, 220 units in Fairburn, GA, Hidden Creek, 116 units, in Marrow, GA, Eastwood Village, 360 units in Stockbridge, GA and Monterey Village, 198 units in Jonesboro, GA.

The multifamily properties are each just minutes from Atlanta Hartsfield airport, the world's busiest, and are the best rental communities in their submarkets. GoldOller has acquired more than 7,500 multifamily units, representing about $650 million of real estate since 2010. However, all of the apartment communities are located in secondary and tertiary markets predominantly in the Midwest and southwest.

“While Atlanta seems to be a variation from our strategy, it's not,” says Jake Hollinger, Chief Operating Officer of GoldOller. “We paid significantly less per door than replacement cost—especially given the newer vintage of these assets—and the average metro Atlanta pricing for comparable properties, and we expect to benefit from management and 'value add' upside while taking the benefit of Atlanta's growth in general and specifically from the proximity of our properties to Atlanta Hartsfield, the world's busiest airport.”

Prospect Capital Corporation provided a majority equity investment through a controlled REIT for the acquisition of the Atlanta multifamily portfolio. In combination with prior multifamily residential investments, Prospect has in the aggregate invested $288.3 million (not including third party financing) in 10 separate transactions encompassing 25 multifamily residential properties with 9,168 rental units and 9.11 million rentable square feet.

“While Atlanta seems to be a variation from our strategy, it's not,” says Jake Hollinger, Chief Operating Officer of GoldOller. “We paid significantly less per door than replacement cost—especially given the newer vintage of these assets—and the average metro Atlanta pricing for comparable properties, and we expect to benefit from management and 'value add' upside while taking the benefit of Atlanta's growth in general and specifically from the proximity of our properties to Atlanta Hartsfield, the world's busiest airport.”

Prospect Capital Corporation provided a majority equity investment through a controlled REIT for the acquisition of the Atlanta multifamily portfolio. In combination with prior multifamily residential investments, Prospect has in the aggregate invested $288.3 million (not including third party financing) in 10 separate transactions encompassing 25 multifamily residential properties with 9,168 rental units and 9.11 million rentable square feet.