IMG Grabs Apartment Community in Georgia
- Mar 19, 2015
Investors Management Group has shelled out $58.3 million for Madison at River Sound, an apartment community in Lawrenceville, Ga, snapping it up from a partnership of B&M Management and Madison International Realty. The owners bought the asset in 2009 and planned on a 5-7 year hold, Shea Campbell, of CBRE Southeast, which finalized the sale, told CPE.
The 586-unit property includes 9-foot ceilings, a two-tier swimming pool and an updated clubhouse. It has a frontage along Highway 316 and sits in close proximity to Georgia Gwinnett College, the fastest growing four-year public college in the state, according to the news release.
“The new owner is planning interior renovations focused on updating kitchens and bathrooms. Also, new exterior pain and select wood replacement are on the plans. Amenity upgrades include a new fitness center and pool furniture,” Campbell added.
Per CBRE, Atlanta’s multi-family market is in better shape than it has been in the past decade, exceeding levels of activity pre-recession. The city’s absorption is in line with the national multi-family trend, in which the national annual multi-family absorption is at its highest level since 2010, with a national vacancy rate of 4.6 percent.
According to Marcus & Millichap’s 2015 Apartment Research Report, a wave of apartment inventory will be delivered this year in Atlanta, though vacancy will tighten as robust employment growth fuels housing demand. Supported by the growing distribution and tech industries, employers are expected to increase hiring in 2015. Brighter job prospects will attract more residents to Atlanta, helping the formation of nearly 34,000 new households this year.
“There is new market rate supply coming in the Lawrenceville market. Considering the growth of GA Gwinnett College, there could be a need for more rental housing in the area – both market rate and student,” Campbell concluded.