ATLANTA—A nine-property Atlanta multifamily portfolio has traded hands for $49 million. The properties are located north of Buckhead on Buford Highway, and are flanked by Brookhaven and Druid Hills.
Marcus & Millichap represented the seller, a prominent national real estate company based in Yakima, WA that currently owns more than 2,000 units in metro Atlanta. The local buyer, Marquis Investments, owns about 5,000 units in Atlanta.
“The timing of this transaction made it beneficial to both parties,” say Paul Vetter, vice president of investments in M&M’s Atlanta office. “The seller brought the portfolio’s NOI from $2.5 million to $4 million in 11 months and took advantage of Atlanta’s rising apartment market. The stabilized NOI and 8% cap rate are favorable to the new owner, who is now in a perfect position to capitalize on long-term growth and land value appreciation, especially on the four best-located assets.”
The properties in the multifamily portfolio are: Cross Keys Cabana Apartments (199 units); Hallmark Apartments (154 units); Parkway Apartments (111 units); Garden Grove (128 units); Continental Village (158 units); Parkview Terrace (135 units); Majestic Village (62 units); Monaco Garden (132 units); and Montego Garden (108 units).
“Job growth in Atlanta will lead the nation this year and spur additional demand for housing,” says Andrew Mays, vice president of investments in M&M’s Atlanta office. “Improving conditions are attracting many investors, including first-time and international buyers. Financing in the metro is readily available, as local and regional banks are becoming more aggressive and CMBS lending regains momentum.”