ATLANTA—WP Carey (WPC) just tag teamed on the acquisition of two multifamily properties in Atlanta. WPC's CPA:18 – Global bought a 97% interest in Dupont Place Apartments in Tucker, GA and Gentry's Walk in Chamblee, GA. CPA:18 partnered with Carroll Organization and Silverpeak Real Estate Partners, which own the remaining interest. The total purchase price was $46 million.

“These investments represented an opportunity to secure assets with strong in-place cash flow and the potential to enhance future returns through targeted capital improvements and the installation of a professional local asset management team,” says Gino Sabatini WPC's co-head of Global Investments. The transactions, he adds, are consistent with the firm's strategy of acquiring income-generating assets backed by solid real estate with significant value-add opportunities.

The multifamily assets are in prime locations. Tucker is just three miles east of Interstate 285 and about 11 miles northeast of Midtown Atlanta. Chamblee is just inside the Interstate 285 loop and about 10 miles northeast of Midtown Atlanta. Both properties are close to major office submarkets including, Northlake, Perimeter Center, and Buckhead.

The multifamily properties span 444 units. Gentry's Walk is a 227-unit apartment complex. Dupont Place, a 217-unit property. The multifamily assets will be rebranded as Arium Dunwoody and Arium Station 29, respectively, in line with Carroll's portfolio. The purchase of these properties takes Carroll's acquisitions for 2014 over the $500 million pace.

M. Patrick Carroll, founder and CEO of Carroll, says 2014 is another great year for his firm. He points to how the firm has added new sourcing capacity to its acquisition team in order to find quality properties where it can execute its value-add model to improve existing apartment communities.

“As we add new assets to our portfolio, we are excited that some of these properties are right here in our backyard,” Carroll says. “Both properties are located in growing submarkets of Atlanta with tremendous upside. We know economic growth drives demand for quality apartments and the Metro Atlanta region is projected to grow at a strong pace.”

The upside seems attractive. According to WPC's research, Atlanta's class A multifamily vacancy rate was 4.3% as of June 2014 and effective rental rates for Atlanta Metro are forecasted to increase by about 2.9% per year over the next five years. Over the past five years, the firm reports, Atlanta was the fourth-fastest growing city by population in the US and its 2.6% annual employment growth exceeds the 1.7% average for 82 major US markets.  Silverpeak could not immediately be reached for comment.

Georgia multifamily is certainly a hot commodity. Star McGinnis Ferry, an indirect wholly-owned subsidiary of Steadfast Apartment REIT, just inked a $73.7 million acquisition loan for Residences on McGinnis Ferry. The multifamily community is in Suwannee, GA. Meanwhile, even class B multifamily is shining in Atlanta.

"Fundamentals are stronger than ever for the apartment market in the Southeast," Tyler Averitt of Multi Housing Advisors tells GlobeSt.com. "Millennials graduating from college are leaning toward renting to avoid risk and maintain flexibility. Coupled with people who lost their homes in the downturn, demand for apartments is at an all-time high.”