Atlanta Portfolio: Attractive Property Fulfills Its Potential in Georgia
This Class B portfolio in the fastest-growing county of greater Atlanta was purchased with an institutional equity partner from an absentee owner who was inactive operationally.
Located in an area with strong job growth, it was acquired at $80,600 per unit, a 10% discount to fair market value. The property offered significant in-place cash flow with considerable growth potential.
At acquisition, in-place rents were only achieving 78% of competitors, presenting a strong opportunity to drive revenue.
Acq./Exit: Sep 2017/Oct 2019
Total units: 687
Invested equity: $16,040,000
Total Cap./Unit: $61,760,000/$89,900
Exit Price/Unit: $80,550,000/$117,200
Rent CAGR/NOI CAGR: 2.3%/4.1%
Gross IRR/MOIC: 51.4%/2.3x
- Invested about $8,000 per unit to resolve deferred maintenance, upgrade interiors, add cultural amenities and implement social programs to drive occupancy and increase resident retention.
- Increased rents by 3.8% and NOI by 6.6% within the first 15 months.
- Added social impact programs including after-school support, fitness classes and partnership with local fire and police to teach kids and their families about safety, community and career opportunities.
- Exited to a large family office that was willing to pay a significant premium for an entry point into Atlanta.