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Wednesday, 20 August 2014

Atlanta Apartments, Retail Space Seen Selling for $121Mln

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Commercial Real Estate Direct Staff Report

A venture led by the Daniel Corp. has struck a deal to sell the 330-unit apartment building at 77 12th St. in midtown Atlanta for $121 million.

The venture, which includes Northwestern Mutual Life Insurance Co. and Selig Enterprises Inc., is selling the upscale property to John Joyce, a Massachusetts investor who in 2011 paid $103.3 million for the 462-unit Catalyst apartment property at 255 West Martin Luther King Blvd. in Charlotte, N.C.

That sale was arranged by Engler Financial Group, an Alpharetta, Ga., brokerage that is representing the Daniel venture in the sale of 77 12th St.

The property came close to being sold to Prudential Real Estate Investors, but a deal fell through for unknown reasons.

Separately, the Madison, N.J., investment manager recently bought the 210-unit apartment property at 92 West Paces Ferry Road in Atlanta's Buckhead section for $73.15 million, or $348,333/unit.

The 23-story building at 77 12th St. includes 22,000 square feet of retail space leased to tenants such as Burger Fi, Max's Wine Dive and Princi Italia restaurant. It also has a five-story parking garage with 461 spaces, a salt-water swimming pool, fitness center and outdoor fireplaces.

It is fully leased with units that have up to two bedrooms that average 838 sf. The average monthly asking rent at the year-old property is $2,051/unit. That's 65 percent more than the $1,321/unit asking rent for class-A apartment properties in the midtown submarket, according to Reis Inc. The newest properties in the area are generating the highest rents.

The hefty rents and healthy occupancy rates in the midtown submarket have resulted in a sharp increase in development. Reis expects 4,878 units to be added to the submarket in the coming four years. That'll outpace the 3,589 units that will be absorbed, according to projections by the New York research firm. In contrast, between 2010 and 2013, a total of 2,023 units were constructed, while 2,642 were absorbed.

The pace of new development will contribute to the expected sharp increase in vacancy, to 9.4 percent from 4.3 percent.

Some 81,000 people work in midtown, which is home to technology incubators that are operated by companies that include Panasonic Automotive Systems Co., AT&T Inc. and General Electric Co. It's also home to Georgia Tech, Emory University, Savannah College of Art and Design and Georgia State University.

Comments? E-mail Josh Mrozinski or call him at (267) 247-0112, Ext. 213.



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Additional Info

  • Syndicate to Realpoint: No
  • Cities: Atlanta
  • States: Georgia
  • Sector: Multifamily, Retail
  • Subject: Property Acquisitions (ACQ)
  • Valuation: Between $100 million and $150 million
  • Private: No
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2016
Investment Bank #Deals Vol$mln MktShr%
JPMorgan Securities 14.94 10,350.16 15.14
Deutsche Bank 14.21 9,926.60 14.52
Wells Fargo Securities 13.36 9,513.96 13.92
Citigroup 10.87 8,061.79 11.80
Goldman Sachs 10.05 7,563.72 11.07

 

MOODY'S/RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2016
Lender #Loans Vol$mln MktShr%
JPMorgan Chase Bank 133.67 8,670.33 13.34
Goldman Sachs 156.20 7,418.37 11.41
Deutsche Bank 178.17 6,510.75 10.02
Citigroup 184.41 5,512.20 8.48
Morgan Stanley 113.18 4,130.53 6.35

 

 

 

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