Waterton Gets Aggressive in Atlanta Multifamily

ATLANTA—Peachtree Apartments, a 19-story, 236-unit class A multifamily asset in Atlanta's Buckhead neighborhood, has won the confidence of investors. HFF arranged a $33.25 million acquisition loan for an affiliate of Waterton Associates, a Chicago-based investment firm specializing in the ownership and management of multifamily properties. 

2460 Peachtree Apartments is located at the intersection of Peachtree Road Northwest and Lindbergh Drive Northeast. The multifamily asset was partially renovated in 2013 and features and is 98% leased.

“This acquisition serves to expand Waterton's presence in the Atlanta marketplace,” HFF director Stephen Skok, tells GlobeSt.com. “In addition to 2460 Peachtree, the firm owns five other multi-housing properties in the area totaling 1,616 units.”

Skok led the HFF debt placement team representing the borrower. HFF associate director Jason Bond and senior managing director Mark Sixour assisted Skok.

HFF placed the seven-year loan with Freddie Mac's Federal Home Loan Mortgage Corporation CME Program. HFF will service the securitized loan through its Freddie Mac Program Plus Seller/Servicer program. Loan proceeds were used to acquire the property.

Across property tiers, Marcus & Millichap says cap rates have compressed 20 to 30 basis points during the past six months. Class A assets in prime locations inside the perimeter garner strong interest from institutions and REITs and command cap rates in the low-4%area.

“Investors are expanding their portfolios in the Atlanta market because of its strong demographics, job creation and steady rent growth,” the report notes. “Consistent improvement in property performance is also limiting the amount of for-sale inventory as current owners collect cash flow. This has created intense competition and an aggressive bidding environment among buyers.”