The price tag equals $75, 188 per unit, says Nicholas Hathaway, an investment specialist with the Atlanta office of Marcus & Millichap Real Estate Investment Brokerage Co. The price represents a 7.69% market capitalization rate for the 28-acre, 296,414-sf rentable property. Hathaway is the listing agent. The property owner is selling to invest the proceeds in other investments.
"This asset offers investors a high-quality property and location that requires minimal equity capital," the broker says. "The property produces strong performance returns and is well-positioned for rent growth." The 93%-leased complex is at 336 N. Belair Rd. Monthly rental rates range from $685 to $998.According to Marcus & Millichap, newly constructed, class A apartment communities carry high-end prices in metro Atlanta and other state markets these days. "The return of institutional investors and REITs is providing a boost to value of larger properties that typically consist of more than 150 units," says John M. Leonard, vice president and regional manager of the firm's Atlanta office. "Dollar volume in this category is forecast to surpass last year's total of $694 million."
Additionally, Leonard notes the median price per unit is up 20% to $68,000. "Prices in this sector are expected to remain high in 2005 as additional institutional and REIT funds flow into the Atlanta apartment market."
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