Grubb & Ellis Realty Takes 312-Unit Atlanta Area M-F
- Sep 08, 2008
Grubb & Ellis Realty Investors has purchased The Retreat at Peachtree in Peachtree City, Ga., a suburb of Atlanta. The 312-unit multi-family property consists of 15 separate residential buildings totaling more than 300,000 square feet on 26 acres. Additionally the community features recreational facilities and an executive business center on site. Each unit is equipped with modern appliances and averages a square footage of 980 feet. Currently, the property is 94 percent leased. Grubb & Ellis purchased the property as part of a joint venture with AMLI Residential and Prudential, which was represented by Engler Financial Group. Capstone Realty Advisors negotiated the financing, which was provided by Teacher’s Insurance and Annuity Association. Grubb & Ellis cited a number of factors as their motivation for making the deal. “The property’s location in a thriving submarket, as well as the asset’s outstanding amenities makes The Retreat at Peachtree City an attractive addition to our portfolio of assets under management,” Jeff Hanson, president & chief investment officer of Grubb & Ellis Realty Investors, said in a release. The firm also sought to expand its presence in the Atlanta metropolitan market. In the last 10 years, the area has seen its population increase to 5.1 million residents, a growth of 40 percent. The Retreat at Peachtree is located in the Fulton South submarket, where apartment rental growth increased by nearly 5 percent in 2007. And rent growth is expected to increase steadily over the next five years, according to a projection by commercial real estate analyst Reis. The purchase is the firm’s second Atlanta buy as of late, coming on the heels of the acquisition of the 199,000-square-foot One Live Oak office building in the Buckhead-Lenox submarket. Grubb & Ellis Realty Investors is a subsidiary of real estate services firm Grubb & Ellis Co. Grubb & Ellis Realty Investors currently has a portfolio of properties worth approximately $6.5 billion in 30 states.