Praedium in $39M Deal to Acquire 500-Unit Newnan, GA, MF
"Praedium will rebrand the property and seek to enhance the tenant experience through a modernization of the clubhouse and amenity space," says Kelsey Durels, a Praedium associate.
NEWNAN, GA—New York-based The Praedium Group is acquiring the 500-unit Trees of Newnan Apartments in Newnan, GA, from Atlanta-based Wilwat Properties, an affiliate of the Watkins Real Estate Group, for $39.4 million. The price was reported by Real Capital Analytics, a proprietary research database that tracks commercial real estate sales data.
“This was an exciting investment opportunity for Praedium, as we were able to purchase the property at an attractive basis relative to replacement cost,” says Peter Calatozzo, managing director of The Praedium Group. “Since 2010, the Atlanta MSA south of I-20 has seen 14% of Atlanta’s MSA population growth, but only 3% of the total supply pipeline. Coweta County has seen 60% population growth since 2000 and is projecting 21% growth over the next 10 years.”
Constructed in two phases in 2014 and 2016, Trees of Newnan consists of twenty-two, three- and four-story apartment buildings. The property’s unit mix is comprised of one-, two-, and three-bedroom homes ranging from 674 square feet to 1,620 square feet, with an average unit size of 985 square feet. Units feature nine-foot ceilings, stainless steel appliances, tile backsplash, track & pendant lighting, and wood-style flooring in portions of the units. The community boasts controlled access gates and the amenity package consists of a clubhouse/leasing center, fitness center with spin area, swimming pool, picnic areas, and an extensive walking/jogging trail system.
“Praedium will rebrand the property and seek to enhance the tenant experience through a modernization of the clubhouse and amenity space,” says Kelsey Durels, a Praedium associate. “We are also contemplating a unit interior upgrade program which we believe will be well received by the market.”
Trees of Newnan is 24 miles southwest of Hartsfield-Jackson International Airport and 33 miles southwest of Downtown/Midtown Atlanta. South Atlanta’s economic drivers include several corporate headquarters, highlighted by Delta Airlines, Chick-Fil-A, and Porsche North America, as well as industrial development that is spurring significant growth in the region. Amazon, Google, Duracell, and Samsung have all made and continue to make substantial investments in logistics and distribution facilities along the I-85 corridor. Additionally, the Cubes at Bridgeport, an 8.5 million square feet industrial development approximately 10 minutes from the property, is currently under construction. Trees is two miles from Downtown Newnan, and is walkable to Ashley Park, a 1.7 million square feet retail center with more than 60 restaurants and stores. Further, McIntosh Parkway, located just south of the property, is currently being extended and, once complete, will provide direct access between Downtown Newnan and the Ashley Park area.