DECATUR, GA-A partnership of Stamford, CT-based GE Real Estate and Investment Realty Holdings LLC, of Birmingham, AL and Atlanta, has purchased the 250-unit Paces Park Apartments for $27.7 million.
The garden-style apartment complex is located at 100 Paces Park Dr. in an in-fill area of Decatur. Units with one bedroom and one bathroom currently rent for $880, units with two bedrooms and two bathrooms rent for $1,180 and units with three bedrooms and two bathrooms rent for $1,505. Complex amenities include a clubhouse, fitness center, gated entranceway, swimming pool and tennis courts.
Investment Realty managing partner Willem Noltes tells GlobeSt.com that the company plans to make capital improvements to the property. "The property needs to be painted and some minor deferred maintenance cured. We plan to improve the business center as well," Noltes says. "These changes will occur very soon. The impact of the changes in management has been immediate. Concessions have been eliminated on new leases and occupancy has increased significantly."
The acquisition is consistent with GE Real Estate's strategy of acquiring and repositioning well-located, underperforming assets in recovery markets. It is the first deal between GE Real Estate and Investment Realty. Nolte adds that Investment Realty plans to do more deals with GE, with the goal of closing $220 million in apartment transactions by the end of the year.
Investment Realty managing partner Guy Savage tells GlobeSt.com several factors made the acquisition attractive. "The Decatur market is making a very positive trend, we also liked the fact there is a very stabile tenant base at the property. Second was the purchase price. We felt we paid a favorable price," Savage says.
Among noteworthy aspects of the transaction was the fact that it closed in 22 days. "We were under a strict deadline from assignment of the contract to closing. We had our debt in place and GE Real Estate applied the necessary resources to complete their rigorous due diligence in this pressurized time cycle," Noltes says. "The fluidity of their procedures from initial contract until committee approval was a key factor in our ability to meet the deadline."
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