Commercial Real Estate Direct Staff Report
A venture led by the Daniel Corp. is offering for sale 77 12th St., a 330-unit luxury apartment building in midtown Atlanta.
The venture, which includes Northwestern Mutual Life Insurance Co. and Selig Enterprises Inc., has tapped Engler Financial Group to market the 23-story property.
The property is expected to sell for upwards of $400,000/unit, or $132 million, which would result in a capitalization rate of roughly 5 percent. If it achieves that per-unit price, it would set a record in Atlanta, topping the $361,702/unit price achieved by the Mezzo, a 94-unit property at 2171 Peachtree Road in Atlanta's Buckhead area that Crescent Heights bought last November for $34 million.
The 23-story property at 77 12th, which is part of the 12th & Midtown mixed-use project, was completed last year at a cost of some $57 million and is 98 percent leased. Asking rents average $2,000/unit, which is higher than midtown's average rent of $1,263/unit and the city-wide average of $1,022/unit for class-A properties, according to Reis Inc.
It has studios, one- and two-bedroom units with up to 1,239 sf. The building's largest units are situated in its corners and have balconies, some as large as 128 sf.
The property includes an Internet café, outdoor deck, saltwater swimming pool with a waterfall, cabanas, outdoor fireplaces, grilling areas and bocce ball court. It also includes 23,000 sf of retail space that is leased to tenants that include Official Raw Denim Boutique Atlanta and restaurants BurgerFi and Max's Wine Dive.
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