MAA Looking To Upgrade Huge Supply Of Atlanta Apartments
The owner of the former Post Properties empire sees upside in Atlanta by renovating more than 1,400 apartments.
This is part of Mid-America Apartment Communities' larger national renovation program, which has targeted 18,000 units across the country to update, including more than 9,000 units formerly held by Post Properties, according to an investor presentation filed with the Securities and Exchange Commission.
MAA merged with Post Properties in 2016 in an all-stock transaction that gave the company a market capitalization of $17B.
MAA will renovate more units in Atlanta than any other city; it is also targeting 748 units to renovate in Dallas and 695 units in Charlotte. According to the presentation, the company expects to spend $116.6M on the renovations, but will reap an annual revenue increase of nearly $25M.
MAA remains bullish on Atlanta's performance, despite pressures of new supply in the metro area.
Atlanta's apartment market is really separated by the interstate highway ring known as I-285, with those inside that ring — the core of the metro area — exhibiting different rental performances than those outside of it, MAA Chief Operating Officer Thomas Grimes told analysts Jan. 31.
"We're very strong outside the Perimeter end market in Atlanta, and the majority of the headwinds that we have on supply are Peachtree Road, Midtown, Downtown," Grimes said.
Despite new supply pressures, demand for apartments remains strong, MAA CEO Eric Bolton told analysts.
“We see no evidence that the demand side of the equation is weakening,” Bolton said. "We continue to see very low move-out occurring, and the job growth numbers continue to be encouraging."
