DUNWOODY, GA-Atlanta-based ECI Capital has acquired the 26-year-old, 268-unit, 38-building Lake Ridge at Dunwoody apartments campus in this suburban city from Denver-based Archstone-Smith for $23.2 million or $86,567 per unit.
The deal for the 95%-leased property at 100 North Ridge Dr., about a mile north of Interstate 285, was done at this time because Archstone was closing out one of its several funds, CB Richard Ellis Inc. senior vice president Kevin Geiger tells GlobeSt.com. "This was one of the few properties left" in Archstone's portfolio. Archstone had owned the property for seven years.
Geiger and CBRE brokers Paul Berry and Malcolm McComb negotiated for the seller. Archstone represented itself. The property was on the market for seven weeks. The transaction took another eight weeks to complete, from contract signing to closing.
ECI was also pleased with the deal because "they were placing 1031 money [in it]…and they realized there was an opportunity to add additional value [on the property] through a re-positioning/rehab of the community," Geiger tells GlobeSt.com. "The Dunwoody [suburban] location, the property's proximity to the major hospitals, Perimeter Mall and the north-central office market all played an important role in their decision to buy."
About a dozen bidders "expressed strong interest" in the property "due to its robust in-place performance, location and floor plans which average 1,409 sf," Geiger says. "Both value-add and cash-flow investors pursued this investment."
ECI president Seth Greenberg calls Lake Ridge at Dunwoody "an excellent addition to our existing portfolio" of about 3,000 apartment units at a dozen properties. "The Dunwoody market continues to experience strong growth and the quality of the rental housing in the area will enable us to consistently achieve solid performance."
The property, built in 1979 and renovated in 1996, has two lighted tennis courts, a pool, a sand volleyball court, playground, a fitness and laundry facility. The average asking gross monthly rent is $904.
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