Multifamily Investors Targeting Atlanta Suburbs

ATLANTA–The Paramount Apartment Homes, a 266-unit multifamily community in the Atlanta suburb of Duluth, has traded hands. Mesa Capital Partners sold the apartment community for an undisclosed price.

CBRE'sBrad Simmel of the Southeast Multifamily Groupexclusively represented Mesa. CBRE's Richard Jordan and Matt Forgioneassisted the buyer, M. Banks Realty Partners, with the assumption of an existing loan. Financial terms of the deal were not disclosed.

"The rental market has become much more active in the suburbs and not just in-town markets," Simmel tells GlobeSt.com. "With the metro Atlanta population continuing to grow and more diverse subset of renters, the suburbs will remain an active player in the multifamily scene. Strong occupancy, limited new construction, job growth and continued forecasts of annual rent growth make for a sound investment."

The Paramont multifamily community is in the Gwinnett Place submarket of Atlanta, one of the most active investment markets of the metro area. Paramount is located at 4201 Pleasant Lake Village Lane in Duluth on Nov. 4, 2015.

The multifamily community recently wrapped up exterior renovations and rebranding under Mesa guidance. The result: occupancy increased to more than 98%.

A recent CBRE Research study found that Atlanta provides the nation's highest investment return of 20.46%, followed by Denver at 15.76%. As Simmel sees it, Investors are drawn to the Gwinnett Place area for two reasons: high occupancy and limited new development. What's more, soon-coming improvements to the area surrounding Gwinnett Place Mall are driving demand for the suburban class B options in growth corridors such as Gwinnett Place.

M. Banks, focuses on investments in Atlanta and the Southeast. Led by Marvin Banks, the group has been actively acquiring Atlanta multifamily properties.