“Edge City” Multifamily Fetches $32M

ATLANTA—Veridian at Sandy Springs, a 272-unit multifamily community in the greater Atlanta submarket of Sandy Springs, has traded hands. StoneBridge Investments acquired the multifamily asset for $32 million.

Mike Kemether and Travis Presnell of Cushman & Wakefield represented the seller, a fund managed by Covenant Capital Group. Elliott Throne, Gregg Shapiro, and Ware Shipman of HFF secured acquisition financing through a Freddie Mac loan.

“Having acquired a neighboring apartment community, 550 Abernathy, earlier this year, we remain bullish on fast-growing Atlanta and particularly the Perimeter Center market,” says William Bateman, director of StoneBridge Investments. “Veridian at Sandy Springs presents our investors with attractive in-place yield as well as continuing rent growth over the coming years, at a price substantially below replacement cost. Due to the recently completed $5 million renovation, little additional capital investment is required going forward, thus providing investors with strong cash flow immediately out of the gate, as well as attractive risk-adjusted returns over the hold period.”

(These loans are attracting new types of multifamily buyers.)

Built in 1980, Veridian is located at 1800 Windridge Drive within the Perimeter Center, a fast-growing “edge city” that encompasses three small cities: Brookhaven, Dunwoody and Sandy Springs. It is Atlanta's largest employment center, with more than 123,000 employees, 31 million square feet of office space, three major hospitals, and 6 million square feet of retail space including the 1.5 million-square-foot Perimeter Center Mall.

Veridian at Sandy Springs comprises 17 low-rise buildings on a 26.5-acre wooded site with frontage on Roswell Road. Amenities include a pool, sundeck, tennis court, fitness center, clubhouse, cyber lounge, pavilion and picnic areas, and a “bark park.” Nearly 600,000 jobs in the Atlanta metro area via Georgia 400, just a half a mile away from the multifamily complex.

“Atlanta is seeing continued rent growth due to its increasing population and subsequent job creation,” says Kevin Geiger, vice chairman of Institutional Properties for the Multifamily division of CBRE. “It is not unusual for the suburban parts of Atlanta to experience organic rent growth, which peeks investors' interest. Atlanta is one of the few markets nationwide that inks solid rent growth and occupancy growth at this late stage in the cycle, and as investors seek value-add opportunities, the three suburban properties in this portfolio provide the opportunity through renovations.”

ZRS Management, an affiliate of StoneBridge, will manage Veridian at Sandy Spring. ZRS currently manages nearly more than 32,000 apartment units nationwide.

ATLANTA—Veridian at Sandy Springs, a 272-unit multifamily community in the greater Atlanta submarket of Sandy Springs, has traded hands. StoneBridge Investments acquired the multifamily asset for $32 million.

Mike Kemether and Travis Presnell of Cushman & Wakefield represented the seller, a fund managed by Covenant Capital Group. Elliott Throne, Gregg Shapiro, and Ware Shipman of HFF secured acquisition financing through a Freddie Mac loan.

“Having acquired a neighboring apartment community, 550 Abernathy, earlier this year, we remain bullish on fast-growing Atlanta and particularly the Perimeter Center market,” says William Bateman, director of StoneBridge Investments. “Veridian at Sandy Springs presents our investors with attractive in-place yield as well as continuing rent growth over the coming years, at a price substantially below replacement cost. Due to the recently completed $5 million renovation, little additional capital investment is required going forward, thus providing investors with strong cash flow immediately out of the gate, as well as attractive risk-adjusted returns over the hold period.”

(These loans are attracting new types of multifamily buyers.)

Built in 1980, Veridian is located at 1800 Windridge Drive within the Perimeter Center, a fast-growing “edge city” that encompasses three small cities: Brookhaven, Dunwoody and Sandy Springs. It is Atlanta's largest employment center, with more than 123,000 employees, 31 million square feet of office space, three major hospitals, and 6 million square feet of retail space including the 1.5 million-square-foot Perimeter Center Mall.

Veridian at Sandy Springs comprises 17 low-rise buildings on a 26.5-acre wooded site with frontage on Roswell Road. Amenities include a pool, sundeck, tennis court, fitness center, clubhouse, cyber lounge, pavilion and picnic areas, and a “bark park.” Nearly 600,000 jobs in the Atlanta metro area via Georgia 400, just a half a mile away from the multifamily complex.

“Atlanta is seeing continued rent growth due to its increasing population and subsequent job creation,” says Kevin Geiger, vice chairman of Institutional Properties for the Multifamily division of CBRE. “It is not unusual for the suburban parts of Atlanta to experience organic rent growth, which peeks investors' interest. Atlanta is one of the few markets nationwide that inks solid rent growth and occupancy growth at this late stage in the cycle, and as investors seek value-add opportunities, the three suburban properties in this portfolio provide the opportunity through renovations.”

ZRS Management, an affiliate of StoneBridge, will manage Veridian at Sandy Spring. ZRS currently manages nearly more than 32,000 apartment units nationwide.