A|P Snaps Up Nine Multifamily Assets in Four States

MIAMI—Atlantic | Pacific Companies (A|P) is expanding its multifamily footprint. The company just snapped up a portfolio of multifamily properties and launched a new multifamily development.

The multifamily properties span Georgia, North Carolina, Texas and Florida and include both garden-style and mid-rise luxury apartment assets. Financial terms of the deal were not disclosed, nor was the seller, but it's reported the properties sold for more than $100 million.

Part of the acquisition gives A|P two suburban Atlanta multifamily assets, the Atlantic | Howell Station in Duluth and The Atlantic | Medlock Bridge in Norcross. The North Carolina multifamily assets are the Atlantic | Lynn Lake and The Atlantic | Millbrook in Raleigh. The Florida project is the Atlantic | Doral Grande in Doral. The remainder of the multifamily assets are in Texas. The company is also developing a multifamily property in South Florida.

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“The company has held this land for a few years,” Mark Briggs, senior managing director of the APM Atlanta office, tells GlobeSt.com. “South Florida’s multifamily market has recovered and we thought it was a good time to put this land into production with for-rent product.”

A|P’s portfolio acquisition was an off-market transaction that offers the firm a springboard to grow outside its Florida and Southern California footprint. Briggs says the company felt comfortable making the move after bringing new senior management members on board over the last two years. Of course, there are still challenges.
 
“The biggest challenges are what they’ve always been—finding good investment opportunities and trying not to over pay,” Briggs says. “The apartment arena has obviously recovered sooner than the retail, office and industrial segments. There are a lot of aggressive buyers in the multifamily arena.”

As Briggs sees it, A|P must be selective with the specific markets and the specific locations it buys into. The firm is not aiming to compete with highly capitalized REITs that are chasing the A-plus product at 4 and 5 caps. Rather, A|P typically targets B and B-plus product with value-add components.

“We saw an opportunity to acquire a critical mass in these multifamily properties, which offer just under 2,000 units,” Briggs says. “The markets like Raleigh, Austin and Dallas are enjoying attractive job growth and rent growth. Atlanta is a little behind that but it’s in our back yard and it has good long-term potential.”