ATLANTA, GA – TerraCap Management, a privately held investment firm based in Estero, Florida, announced the sale of The Crossings at the Holcomb Bridge Apartments. TerraCap acquired the 268-unit apartment complex in September 2017 for USD 27.3 million as part of a multi-family portfolio of four properties and 1,100 units for a total of USD 116,000,000. Since the acquisition, TerraCap's combined strategy of property upgrades, organic rental growth and unit renovation has resulted in a significant increase in rental rates for the 1984 vintage property.
Robert Witt, TerraCap Asset Manager, said, "When we bought the Holcomb property, we saw the opportunity to take advantage of a well-located asset with strong demographics, access to public transportation and existing rents that were well below competitive properties We implemented a capital plan to update the exterior, refurbish the interiors of the units and improve the quality of on-site management. The physical and operational improvements resulted in a 33% increase in monthly rents over three years $ 787 to $ 1,046. The buyer will acquire a property that will build on the strong growth foundations currently in place. "
The property is located in the northern suburb of Atlanta, Roswell. The North Fulton submarket is one of the most desirable submarkets for residential real estate in Atlanta, and rental growth has outperformed the subway average in recent years. TerraCap hired First Communities Management to manage their properties because they have extensive experience implementing multi-family, value-added strategies across the Atlanta marketplace.
"We are pleased that the North Atlanta Holcomb Apartments business plan is producing results that have exceeded our expectations," said Steve Hagenbuckle, founding partner and managing director of TerraCap. "Our belief in investing in high-demand, financially healthy markets with oversized job growth and immigration continues and remains a safe choice for us and our investors. The TerraCap asset management team and our local business partners must The excellent execution of this investment was praised for their recognition. "
David Gutting of NGKF in Atlanta represented TerraCap on the sale. First Communities Management, led by Mitch Harrison, Jon Nixon and Ed Romano, represented TerraCap in real estate management.
Source: TerraCap management