This Week's Atlanta Deal Sheet: J.P. Morgan REIT Buys Bass Lofts
A fund run by J.P. Morgan's asset management arm has purchased a former Atlanta high school-turned-apartment complex in Little Five Points.
J.P. Morgan Real Estate Income Trust purchased Bass Lofts, a 133-unit, Class-A apartment building in the trendy Atlanta neighborhood for $34.8M, according to a filing with the Securities and Trade Commission.
The nontraded REIT didn't disclose the seller in the filing but an affiliate of Vinings-based real estate firm Clark Ventures is listed in Fulton County records as the most recent owner. Clark purchased Bass Lofts, located at 1080 Euclid Ave., in 2011 for $16.2M.
The building was constructed in the 1920s as a junior high school, which later became Bass High School after a separate gym was constructed. In 1996, when the Summer Olympics came to Atlanta, the city school system closed down Bass High School and sold it to Winter Properties, which at the time was known as Winter Construction.
Winter, under chairman Robert Silverman, redeveloped the three-story, 120K SF brick-and-concrete structure into loft apartments, keeping some of the original features intact, including the school’s auditorium, Depression-era mural painting and a trophy display case, according to the Urban Land Institute.
The property is currently 96% leased, according to JPMREIT. The firm stated in the filing that it expects Bass Lofts to benefit as the Atlanta multifamily market comes down from peak supply and rents stabilize.
SALES
The Reserve at LaVista Walk, a 283-unit apartment complex that partially burned down in November 2023 after a fire caused by two individuals who launched fireworks from the roof, has been sold.
An affiliate of Atlanta-based Varden Capital Properties bought the 4.5-acre property at 1155 Lavista Road for $33M from Avenium Group and Silverpoint Management, the Atlanta Business Chronicle reported.
The fire prompted residents to file a class-action lawsuit against Avenium and Silverpoint for negligence in managing the complex, according to the ABC.
Avenium and Silverpoint paid $90M for the property in 2021, according to the ABC. Synovus Bank supplied a $50M, five-year loan to Varden for its purchase, the ABC reported.
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Kolter Urban purchased 102 West Paces Ferry Road, a 4.7-acre site in Buckhead, for $38M. It plan to develop Elyse Buckhead, a 20-story luxury condominium project with 196 units, on 2.7 acres of the site.
This will be Kolter’s third Atlanta condo project after The Dillon and Graydon Buckhead, according to the ABC. Hailey Realty Co.’s Reid Hailey brokered the sale.
CONSTRUCTION AND DEVELOPMENT
Atlanta-based Abebe Ventures has filed an application to develop a 3,000-unit residential neighborhood with more than 716K SF of commercial, retail and restaurant space at the corner of Sylvan Road and Cox Avenue in the Capitol View neighborhood, according to an application filed with the Georgia Department of Community Affairs.
The project, which is slated for land alongside a future segment of the Atlanta BeltLine, would fully deliver in December 2035. Affiliates of Abebe Ventures have been amassing the land for years, according to land records reported by the ABC.
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Buford-based real estate investor John B. Williams filed an application with the state to develop a 1.4M SF data center in Covington. Gregory Road Data Center would be part of a larger 520-acre development with 27 single-family lots for a total estimated value at build-out of $5.7B, according to the application.
It is expected to be built out in three phases between 2027 and 2036, generating $19M a year in local tax revenues.
LEASES
Lueder, Larkin & Hunter is moving its headquarters to Deerfield Commons I, a 122K SF office property at 12600 Deerfield Parkway in Alpharetta. The law firm is relocating from 5900 Windward Parkway in Alpharetta.
Flexible office provider Regus also renewed its 45K SF lease at the buidling, which is owned by Stockbridge Capital Group. Regus has had a location at Deerfield Commons I since 1999. Transwestern’s Greg Frankum and Matt Spickard represent Stockbridge at the property.
PERSONNEL
Blake Fine has been tapped as executive director of the Atlanta office of JLL’s value and risk advisory platform. Fine is tasked with spearheading business development efforts. The 24-year industry veteran was previously executive vice president at Keystone Valuations, according to his LinkedIn profile.
