Pollack Shores Real Estate Group has struck a deal to sell the 341-unit Citizen Perimeter apartment property in the Atlanta suburb of Sandy Springs, Ga., for roughly $80.1 million, or $235,000/unit. The Atlanta apartment specialist had offered the property, at 1125 Hammond Drive, through Engler Financial Group. The $235,000/unit price would be the highest for an apartment property in the Central Perimeter submarket in at least a year.
The area has a super-low 3.2 percent vacancy rate and hasn’t seen any new units come on line since 2011. But that’s changing, as Reis Inc. projects that 691 units will be added to the area’s 26,007-unit inventory this year.
Still, fundamentals are strong enough to drive heated demand for properties that are offered. According to area professionals, property deals are being underwritten with the assumption that rents will increase by 4 percent annually for the next several years.
While the supply of units has remained flat, demand should stay healthy. State Farm Insurance, for instance, will be taking some 585,000 square feet of a 2.2 million-sf mixed-use complex that KDC Real Estate Development and Investments is building nearby. That’s expected to translate to demand for apartment units.
Monthly asking rents at Citizen Perimeter range from $1,290 for a one-bedroom unit with 638 sf to $2,915 for a two-bedroom unit with 1,356 sf. Units, which average 859 sf, include stainless-steel appliances, walk-in closets and kitchen islands. The property includes a saltwater swimming pool, walking trails and courtyard with a theater. It also has a parking garage with 478 spaces.
Citizen Perimeter is three blocks from the Perimeter Mall and minutes from the Dunwoody MARTA light-rail station.
While a $235,000/unit price would be high for an Atlanta property, it’s not the highest. Earlier this year, Prudential Real Estate Investors paid $73.15 million, or about $348,333/unit, for 92 West Paces Ferry Road, with 210 units, and MetLife Real Estate Investors paid $106.5 million, or about $285,523/unit, for the 373-unit Elle of Buckhead. But both of those properties are in the Buckhead submarket, where higher rents are the norm.
The area has a super-low 3.2 percent vacancy rate and hasn’t seen any new units come on line since 2011. But that’s changing, as Reis Inc. projects that 691 units will be added to the area’s 26,007-unit inventory this year.
Still, fundamentals are strong enough to drive heated demand for properties that are offered. According to area professionals, property deals are being underwritten with the assumption that rents will increase by 4 percent annually for the next several years.
While the supply of units has remained flat, demand should stay healthy. State Farm Insurance, for instance, will be taking some 585,000 square feet of a 2.2 million-sf mixed-use complex that KDC Real Estate Development and Investments is building nearby. That’s expected to translate to demand for apartment units.
Monthly asking rents at Citizen Perimeter range from $1,290 for a one-bedroom unit with 638 sf to $2,915 for a two-bedroom unit with 1,356 sf. Units, which average 859 sf, include stainless-steel appliances, walk-in closets and kitchen islands. The property includes a saltwater swimming pool, walking trails and courtyard with a theater. It also has a parking garage with 478 spaces.
Citizen Perimeter is three blocks from the Perimeter Mall and minutes from the Dunwoody MARTA light-rail station.
While a $235,000/unit price would be high for an Atlanta property, it’s not the highest. Earlier this year, Prudential Real Estate Investors paid $73.15 million, or about $348,333/unit, for 92 West Paces Ferry Road, with 210 units, and MetLife Real Estate Investors paid $106.5 million, or about $285,523/unit, for the 373-unit Elle of Buckhead. But both of those properties are in the Buckhead submarket, where higher rents are the norm.
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