Atlanta Investor's Inroad Yields 1,840 Units

BIRMINGHAM, AL-Atlanta-based Miles Properties Inc. has made its first foray into the area with a $57.5-million acquisition of the 1,840-unit Aspen portfolio. The value-add portfolio attracted 10 offers from private players throughout the Southwest.

Miles Properties Inc. won the right to acquire the three-property portfolio because of its reputation for turning around class B-minus assets. Miles Properties didn't come up with the highest offer, but Bill Shippen, vice president for Apartment Realty Advisors in Atlanta, tells GlobeSt.com that its capital plans, outstanding track record with under-performing purchases and timing got it the portfolio.

"The exciting thing about this whole process is we had multiple offers willing to go non-refundable from Day One," says Shippen, who with ARA colleagues John Weber and Vince Lefler represented the seller, a southeastern US partnership. "That isn't unusual in South Florida or some of the larger markets. But to take on a deal in a secondary city--in a portfolio that's 60% occupied--and go hard Day One is pretty good."

Shippen tells GlobeSt.com that Miles Properties plans to upgrade and reposition the three 1980s-era complexes, including the likelihood of names changes as well. The per-unit budget is still being fine-tuned.

The seller was willing to consider one-offs, but Shippen says the premium came by taking the whole lot, partly because the complexes are in the same submarket and within two miles of each other. "This was about 50% of the submarket," he says.

The 642-unit Aspen Ridge at 114 Aspen Circle has studios to three-bedroom units, averaging 854 sf. The monthly rent averages $650. The 554-unit Aspen Run at 200 Jemison Dr. is a mix of studios and one- and two-bedroom units, averaging 905 sf. Its monthly rent averages $650. The 644-unit Aspen Trail at 700 Aspen Dr. also has studios and one- and two-bedroom apartments, averaging 801 sf. Its per month average is $650.