Southeast Capital's $17M Apartment Project Targets Seniors

"The Jonesboro/Stockbridge market is one of the fastest growing areas for families," Lathi says. "We believe this influx of families will create demand for seniors wanting to be near their children and grandchildren."

The Gardens at Lake Spivey in the Jonesboro-Stockbridge market expects to be ready for occupancy in early 2005. Rents for the one-bedroom and two-bedroom apartments start at $670 per month. The site is 14 miles south of Downtown Atlanta on Highway 138, about two miles from Interstate 75.

While there are numerous traditional apartments in the Jonesboro/Stockbridge submarket, Lathi says his company's research "indicates that as much as 10% of these tenants are over 55, and given the choice of living with their peers in an amenity-rich building with interior corridors and elevators for the same cost as a walkup garden apartment, they will choose the former."

The Southeast Capital principal says the submarket is under-built with product comparable to the Gardens at Lake Spivey and demand is strong. "This submarket contains 5,000 traditional apartments," Lathi says. "Ten percent of these tenants are likely eligible renters. When you add in the families, as well as the seniors who live in the area who might be interest in downsizing, we think the demand could be as high as 1,500 units."

Lathi expects the project to lease up in 16 months. "There are no competing properties targeted towards active seniors," he adds. MMA Financial of Clearwater, FL is providing debt and equity financing for the project.