This Week's Atlanta Deal Sheet
A Buckhead-based multifamily investor is expanding its Southeast apartment portfolio with the help of Fannie Mae and some preferred equity.
ARC Multifamily Group received a $34.2M Fannie Mae senior loan and an $11.7M preferred equity investment from Related Fund Management to finance its $52M acquisition of The Preston, a 334-unit apartment complex in McDonough.
Buckhead-based ARC purchased the 42-acre complex where rents start in the low $1,400s per month, the Atlanta Business Chronicle reported. The property's amenities include two pools, a grill area and a residents’ lounge, according to its website.
The Preston was previously owned by an entity known as AP Preston Creek LLC, which purchased the apartments in 2015 for $29.5M, according to the Reonomy database.
CBRE's Blake Cohen and Charlie Clark brokered the financing.
ARC owns a number of other Southeastern apartment communities, including The Blakely, a 420-unit complex in Pendergrass; the 294-unit Netherly Park in Union City; IndiCo Living in Gainesville with 120 units; and the 284-unit Hunters Run in Macon.
FINANCING
Invest Atlanta has granted roughly $45M in incentives to help finance the development of four new affordable housing projects encompassing more than 440 units, including some units geared to renters earning 30% or below the area median income.
IA granted nonprofits The Paces Foundation and Soho Housing Partners a $37.5M tax-exempt loan and a $2.9M housing opportunity bond loan for Metropolitan Place, a 176-unit affordable apartment complex in the Perkerson neighborhood. The nonprofit City of Refuge earned a $2M BeltLine Tax Allocation District grant for its 36K SF Transformation Center in the historic West End/Bankhead neighborhood that will include 38 housing units.
IA also granted a $1M Westside TAD Ascension Fund grant to the Historic District Development for Lewis Crossing, a 50-unit affordable project for renters earning between 50% and 80% AMI in the Castleberry Hill neighborhood. Trinity United Methodist Church received a $2M IA grant to convert a historic sanctuary on the church campus into a 45-unit senior living facility.
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Tidal Real Estate Partners refinanced its construction loan for the Ann Street Lofts in Downtown Savannah with a $78.6M bridge loan from BentallGreenOak. The five-year, floating-rate loan retires Cerberus Capital Management’s construction loan on the property.
The project at 111 Ann St. is a six-story, 232-unit development primarily catering to local Savannah College of Art and Design students.
Walker & Dunlop Senior Managing Directors Keith Kurland, Aaron Appel, Jonathan Schwartz and Adam Schwartz, Senior Director Michael Ianno and Senior Analyst Christopher de Raet arranged the financing for the developer.
SALES
GreenSky Inc. paid $12M to buy The Dupree building sandwiched between Sandy Springs and Cumberland/Galleria to house CEO David Zalik’s philanthropic efforts, the Atlanta Business Chronicle reported. Zalik told the ABC he plans to relocate the Zalik Foundation and the Zalik Family Office to the 138K SF office building off Powers Ferry Road.
Bridge Investment Group sold the six-story building to GreenSky, having bought it five years earlier for $12.6M.
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DWS Group purchased Rockingham Farms Building 10, a 413K SF distribution center in Savannah, from Scannell Properties for $50.8M. Building 10 is part of the Rockingham Farms Logistics Park and is less than 10 miles from Savannah’s Garden City Terminal.
JLL's Britton Burdette, Dennis Mitchell, Matt Wirth and Jim Freeman brokered the sale.
PERSONNEL
Catalyst Development Partners appointed David Harry as its chief financial officer earlier this month, tasked with not only financial oversight of the luxury apartment developer but also generating new business in Metro Atlanta. Prior to Catalyst, Harry was a partner with Harbour Real Estate Partners and a senior vice president with Preferred Apartment Communities.
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Atlanta-based Hospitality Ventures Management Group named Heidi Nielsen as vice president of business development. A 20-year hotel veteran, Nielsen was most recently vice president of asset management for Meyer Jabara Hotels.
