CBRE announced that it has arranged $74.2 million in financing for the acquisition of a four-property, 1,100-unit apartment portfolio located in Atlanta’s premier suburban markets.
The properties in the portfolio include:
• The Knolls, 1675 Roswell Road, Marietta, Georgia; 312 Units
• The Crossings, 875 Franklin Road SE, Marietta, Georgia; 380 Units
• The Arbors, 100 Arbor Circle, Tucker, Georgia; 140 Units
• The Crossings at Holcomb Bridge, 100 Creekside Way, Roswell, Georgia; 268 Units
C.J. Kelly and Porter McDonald of CBRE Capital Markets’ Debt & Structured Finance team in Atlanta secured the loan on behalf of the borrower, TerraCap Management. The four-year, floating rate loan was provided by Principal Real Estate Investors.
“This portfolio aligns well with our investment strategy and portfolio construction for our fourth fund, TerraCap Partners IV LP. We feel this acquisition will bring solid yield and value to our investors given its geographic diversity in growth markets and the opportunity to add value through strategic updates,” said Stephen Hagenbuckle, founder and managing partner of TerraCap Management.
“The seller was very focused on a third quarter 2017 sale, which created a very compressed timeline from award to close. Both the borrower and lender performed incredibly under significant time constraints. Principal was able to compete very effectively with the agencies based on the flexibility afforded by their shorter-term capital,” said Mr. Kelly, vice president, CBRE.
The portfolio represented a unique opportunity to acquire four high-quality mid-1980’s assets located along Atlanta’s northern suburbs. The portfolio is currently 94% leased with in-place rents below those in their competitive sets. TerraCap intends to continue to push market rents through cosmetic and functional improvements to both the individual units and to the larger communities.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.