Iron Gate Makes $106.5M M-F Pickup in Atlanta
- Dec 16, 2011
December 16, 2011
By Nicholas Ziegler, News Editor
The investment side of the Atlanta apartment scene continues to grow in volume. The latest is Iron Gate Realty Partners – a venture of GFI Capital Resource Group – picking up the city’s Villas portfolio for $106.5 million from Davis Development. The portfolio consists of four buildings totaling 1,168 units.
The four buildings, Villas at Newnan Crossing, Villas at Kennesaw, Villas at Sugarloaf and Villas at West Ridge, were all constructed between 2005 and 2008. According to Robert Mascaro, vice president of Southeast acquisitions for Iron Gate, a prime concern will be the greening of the property. “We are focused on reducing energy consumption and will be adding many energy efficient components over the next 12 months,” he said.
While multi-family in general is a big area for institutional investment, the Atlanta market is particularly heated. According to a fourth-quarter report by Marcus & Millichap Real Estate Services, the apartment-vacancy rate remains on track to fall to its lowest rate in three years and demand is only going to intensify – especially since new completions in 2011 are at their lowest levels in 10 years. “Persistent institutional interest in the metro’s large, Class A complexes, especially those built in the past 20 years, are pushing many private investors to stabilized Class B product,” the report noted.