ATLANTA, GA – The 37th Parallel Properties Investment Group, on behalf of its investors and its joint venture partner, Sophus Investments, announced the recent acquisition of Hawthorne at Clairmont, a 269-unit apartment building in Atlanta, GA in 2009. This acquisition is the fifth transaction of 37th parallel in 2020 and contributes to the company's growing presence in the southeast.
"We are excited to add this high quality asset to our growing portfolio and to continue our strategic expansion in suburban Atlanta," said Dan Chamberlain, Managing Partner. "Suburban, Garden-Style and Mid-Rise Multifamily have demonstrated substantial resilience across the Covid-19 range. This year we added several well-placed assets valued at over $ 100 million, mostly focused on the The stability of the submarkets and employment diversity will focus this strategy to accelerate until 2021. "
The property is located on the Peachtree Corridor just off I-85 and I-285 and gives residents exceptional access to some of Atlanta's largest business centers including Buckhead, Perimeter Center, Emory / CDC, Clifton Corridor and Midtown. The property has a mix of one and two bedroom units with large floor plans averaging 1,011 square feet. Community amenities include balconies, three-foot ceilings, a state-of-the-art fitness center and cardio studio, dog park with agility equipment, large saltwater pool, outdoor stainless steel grilling stations, and a parking deck with covered parking.
"This investment gives us the opportunity to secure an attractive institutional quality asset that offers both revenue and operational upside potential," said Doug Fraser, who leads the company's acquisition efforts. "The asset is in a sub-market with a high barrier to entry that has continued growth in demand and limited new supply," says Fraser. "Since there is only one multi-family property under construction on the submarket, a medium-sized product with replacement costs that are well above the total base of our assets, we expect the delivery bottleneck to push rental prices up and help us to take advantage of our advantages." Business plan. These favorable supply and demand characteristics have led to average rental growth of over 6% per year since 2015 and one of the lowest vacancy rates in the underground, which further substantiates our investment thesis. "
The property was 96% occupied at the time of acquisition.
This acquisition marks the fourth investment from the opening fund of 37th Parallel. The 37th Parallel Fund I, which was launched in November 2019, aims to acquire multi-family properties with added value and core plus in the southeast and in Texas. "The acquisition of Hawthorne from Clairmont in Atlanta further diversifies the fund portfolio and brings excellent upside potential to our investor family," said Chad Doty, Managing Partner. The fund has invested in Dallas, Austin, San Antonio and now Atlanta.
The Hawthorne acquisition, which is structured as a joint venture with Sophus Investments, was funded with a mix of 1031 Exchange equity, 37th Parallel Fund I equity and new investor capital from Sophus Investments. "We are thrilled to partner with 37th Parallel on this compelling opportunity to grow and provide communities with access to clean, safe, high-quality, affordable housing while delivering attractive returns for our investors," said Vinay Upasani, president from Sophus Investments.
The asset will benefit from floating rate debt financing through agencies arranged by Cutt Ableson and Colin Marusak of Berkadia. The properties are administered on-site by Atlanta-based First Communities who manage over 18,500 subway units for a total of over 57,000 units. 37th Parallel would like to thank Kevin Geiger of the Southeast Multifamily Team at CBRE, who represented the seller on the transaction.
The property is completely renamed and has been given the new name Haven on Peachwood. Community-wide renovations will accompany the new brand.