Rreef America Pays Post $133M for 1,738 Apartments

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SMYRNA, GA-Post Village, a five-neighborhood, 155-acre apartment community developed by Post Properties Inc. in this Atlanta suburb is under a sales contract for $132.5 million to Rreef America LLC, a wholly owned subsidiary of Germany-based Deutsche Bank AG.

The deal, believed to be the Atlanta area’s largest multifamily property sale this year, is expected to close in the third quarter, according to Post officials. The purchase price includes the assumption of $47.5 million of tax-exempt mortgage debt.

The sale follows Post’s previously announced plans to sell off older assets and enter the heated condo conversion market. In a prepared statement, Post officials didn’t indicate what they plan to do with the sales proceeds. GlobeSt.com couldn’t reach Post officials by publication deadline.

Rreef America is a San Francisco-based real estate investment advisor with $18 billion in real estate assets under management with about $3 billion of that total in equity REITs. Rreef America is paying $76,237 per unit, about the same per-unit price another foreign investor, Casa Partners III LP, an affiliate of London-based Henderson Global Investors, paid in May for 936 apartments at Post’s 476-unit Post Walk and 460-unit Post Corners properties. Casa paid $71.4 million for the two assets, as GlobeSt.com previously reported.

In Post Village, Rreef gets five fully leased Cumberland-Galleria area communities at 2085 Lake Post Dr. in northwest metro Atlanta. They are the Arbors of Post Village, the Hills of Post Village, the Gardens of Post Village, the Fountains of Post Village and the Meadows of Post Village.

Post Village surrounds the Poplar Creek Nature Preserve and includes an 11,000-sf private athletic club with an indoor track, fitness room, hair salon, clubroom and pub. Besides conventional for-rent apartments, Post Village also has short-term corporate rental units. Monthly rents range from $525 for a 585-sf studio, one-bath unit to $835 for a two-bedroom, two-bath, 1,300-sf apartment.