SANDY SPRINGS, GA-Lyon Capital Ventures of Newport Beach, CA has entered metro Atlanta's multifamily investment arena with the $98-million purchase of Spring Creek Apartments. The 1,180-unit, 12-building, 23-year-old property is at 8085 Brandon Mill Road in this suburban city.
The deal is the second largest multifamily transaction to close locally since Deutsche Bank's Reef of San Francisco paid Atlanta-based Post Properties Inc. $132.5 million, or $76,237 unit, for the 1,738-unit Post Village complex in suburban Smyrna, as GlobeSt.com reported in June. The deal closed in August.
Lyon Capital paid $83,050 per unit for the 93% property to San Diego-based Fairfield Residential. The deal closed Dec. 29 but was not disclosed to GlobeSt.com until today because the seller "had to work out tax consequences of the deal," sources in a position to know tell GlobeSt.com.
Greg Engler, president of Atlanta-based Engler Financial Group and Lyon's Jay Burns, negotiated the deal for Lyon. Fairfield Residential represented itself. The property was never on the market, Engler tells GlobeSt.com in a phone interview. "It was a direct deal and was done at this time because Lyon is redeploying some of its capital into more potentially profitable markets," Engler says.
The deal took three months to complete, from contract signing to closing. Lyon has contracted to buy "several additional" assets in the Atlanta market, Engler tells GlobeSt.com. Lyon has acquired about $1 billion in multifamily assets over the past few years, Engler says. His own company closed 2005 with a record $1.5 billion in multifamily property sales.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.