Behringer Harvard M-F REIT Builds Property in Atlanta
- Mar 13, 2014
Behringer Harvard Multifamily REIT I Inc., of Dallas, has begun construction of Cyan on Peachtree, a 23-story, 329-unit luxury apartment development in the Buckhead office and entertainment district north of downtown Atlanta, the REIT announced Wednesday.
The property will also include an adjacent seven-level, controlled-access parking facility and is slated to open in the second quarter of 2015.
The nearly 2-acre development site at 3380 Peachtree Road is one block from the Buckhead MARTA station, adjacent to the Mandarin Oriental hotel and condo tower, and across the street from the 1.5-million-square-foot Lenox Square Mall.
Equity capital for Cyan’s construction was provided by the REIT and by Monogram Residential Master Partnership I L.P., a joint venture between the REIT and PGGM Private Real Estate Fund, a real estate investment vehicle for Dutch pension funds.
The project is being developed by an affiliate of Atlantic Realty Partners, an Atlanta-based private CRE firm. The general contractor is Brasfield & Gorrie, of Birmingham, Ala., the Southeast’s largest general contractor.
“Beyond its amenity-rich location, we feel Cyan’s features and unit mix have been optimized to address unmet market demand for luxury apartments with superior-quality finishes offered at competitive rates,” Mark Alfieri, president & COO of the REIT, said in a release.
Cyan’s apartment units will average 838 square feet. Just more than half will have one bedroom; larger units will be available with up to three bedrooms and two and a half baths. The apartments will feature 9-foot ceilings, floor-to-ceiling windows, full-size washers and dryers, quartz countertops in kitchens and baths, 42-inch hardwood cabinetry, and kitchens with islands and stainless steel appliances.
Common-area amenities will include a garage-top deck with resort-style pool and cabañas, gardens and grilling areas, a terrace, fitness center and sidewalk cyber café.
Among 2000-and-newer apartment buildings in Buckhead, the 2013 vacancy rate was 4.0 percent (versus 4.3 percent in 2012) and the average effective rent was $1,584 (up 3.7 percent from the prior year), according to Marcus & Millichap Research Services.
Commercial Property Executive reported in late December that Behringer Harvard Multifamily REIT I entered into a new $300 million arrangement with PGGM to co-invest in multi-family communities. The two have had a relationship since 2007 and had previously partnered to the tune of $300 million for co-investment in three separate tranches of $100 million. From May 2007 through September 2013, PGGM co-invested with the REIT in 28 multi-family communities with a total capitalized cost of approximately $1.6 billion.