G&E REIT Acquires Another Apartment Community

The 216-unit Kedron property sits on 21.6 acres at 100 Hyacinth Lane in the Atlanta suburb of Peachtree City. Amenities at the 93% occupied community include a fitness center, business center, swimming pool and a car care center.

The REIT purchased AMLI at Kedron Village from AMLI Residential and Prudential Real Estate Investors, represented by Greg Engler, Patrick Jones and Kris Mikkelsen of Engler Financial Group LLC. Freddie Mac financing was arranged by Don Marshall, Mike Bryant and John Reed with Capmark Finance.

"This property allows us to stay in line with the Grubb & Ellis Apartment REIT investment strategy by further diversifying the portfolio with a property that we expect will provide our investors with a strong and stable cash flow," said Stanley J. Olander Jr., CEO of Grubb & Ellis Apartment REIT, in a release.

Last week, GlobeSt.com reported the same G&E REIT purchased the 280-unit Creekside Crossing apartment community for $25.4 million from an affiliate of Norfolk, VA-based Harbor Group International LLC. That property, which is currently 98% occupied, is located just off Interstate 20 at 100 Cavalier Crossing in the Atlanta suburb of Lithonia. Rental rates at the community range from $780 to $1,195 per month for one- to three-bedroom floor plans.

In separate releases, Olander commented on the importance of high tenancy rates at both properties in the purchases, which he expects to add economic strength to the REIT's portfolio. The fund reports that it has made 12 acquisitions with a total portfolio valued at approximately $304 million, based on purchase price.

Steady renter demand and investment interest are keeping the local apartment market healthy, even though transaction velocity is not at last year's record pace, say market professionals. Elliott Hollander, director with the national multi-housing group of Marcus & Millichap, says that despite a recognizable slowdown in apartment transactions, the market in Atlanta is actually stabilizing after a boom in 2006 and 2007.

"One of the major reasons for both a shift in transaction velocity as well as pricing has been the capital markets," Hollander told GlobeSt.com last week. "With the collapse of the CMBS market, it's been back-to-basics, fundamental underwriting for these properties. Luckily, multifamily properties are really the favorite asset type of lenders right now."