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ATLANTA-Gables Residential, a Boca Raton, FL-based national apartment operator, has closed on $59.2 million in two area deals. The Florida firm sold a 32-year-old multifamily asset for $26 million and bought a high-end apartment community for $33.2 million.

Gables paid about $117,647 per unit for the 272-unit Gables Druid Hills in the affluent Buckhead district of Downtown and sold its 603-unit Lakes at Indian Creek in the metro area for $43,118 per unit. Gables CEO Chris Wheeler didn’t disclose the corporate names of the seller and the buyer in the two deals.

“Transaction timing results in a trade of Indian Creek for Gables Druid Hills, which is a significant enhancement to our Atlanta portfolio,” Wheeler says. “We have a new asset and income stream that are consistent with our EPN strategy and we have recycled capital from an asset with an extremely high cost of ownership to one with a very low cost of ownership.”

Gables Druid Hills is a newly completed community built by Gables via its third party construction business. “We know this asset intimately, which reduced our due diligence risk and allowed us to mitigate competition from other buyers,” says Gables chief investment officer David Fitch.

Gables Druid Hills is 81% leased. Fitch says Gables expects a stabilized yield of about 6.9% on its $33.2-million acquisition cost. Lakes at Indian Creek represents a private market underwriting cap of about 7.4%, Fitch says. The company expects to report a gain on sale, net of associated costs, of $9.5 million or 28 cents per share in the second quarter.

“With a mission of Taking Care of Way People Live, Gables Residential has received national recognition for excellence in the management, development, acquisition and construction of luxury multifamily communities in high job-growth markets,” Fitch says.

The company targets Established Premium Neighborhoods, or EPNs, generally defined as areas with high per-square foot prices for single-family homes. “By investing in resilient, demand-driven markets and EPN locations with barriers to entry, the company expects to achieve its strategic objective,” Fitch says.

Gables Residential manages 47,146 apartment homes in 184 communities. The company owns 85 communities with 22,903 stabilized apartment homes, primarily in Atlanta, Houston, South Florida, Austin, Dallas and Washington, DC. Gables has an additional seven communities with 1,966 units under development or leaseup.

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