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November 14, 2013
Cygnus Capital Raising Third Fund
When the value in apartment acquisitions disappears, whatâs a value-add buyer to do? If youâre Cygnus Capital, you buy a Jackson Hole resort. (It's like getting an ice cream on a bad day.)
Atlanta-based Cygnus is preparing to launch its third fund for distressed and REO property acquisitions. But while previous funds focused on multifamily, improving fundamentals and capital demands have evaporated what the firm sees as true value-add apartment deals in many places, says Cygnus' Christopher Swann. "Over the years we saw the market tighten up in that area," he says. "So we've moved into other opportunities, and usually they're more complex and frankly a more diverse product type."
Case in point: Cygnus this past February purchased the Snake River Sporting Club in Wyoming, a 200-plus acre resort that includes a golf course, equestrian facilities, and home lots(the property fell into foreclosure in 2010). It will be projects like that Christopher says the third fund (aimed to raise $25M) will target. "What we do see is a continuing pipeline of notes; and more speculative deals and land," especially around the Southeast. "Now that we're in one golf course, we're going to be looking for more of those." (They need to do a lot of research--hands on research--on all these golf courses.)
Parkway Details ATL Buys
What's the price for Parkway Properties in Atlanta? So far this year, it amounts to more than $100M. Parkway released details of its two Atlanta acquisitions in 2013, including its trophy buy of Tower Place 200 in Buckhead and most recently, 7000 Central Park in Dunwoody. As for Tower Place, the company acquired the 258k SF towerfor $56.3M using its unsecured revolving credit facility, according to SEC filings. "The building is unencumbered by debt and the company does not plan to place secured financing on the property at this time," officials state.
During the past few weeks, Parkway also announced it bought 40% interest in 7000 Central Park, a 415k SF building in Central Perimeter. The company says its total share in buying the note secured by the building was $45M. The JV foreclosed on the property earlier this month "and expects to place secured financing on the asset by the end of the Q4," officials say.
Fulkerson, Dean Go Homeless For A Cause
Transwestern's Bradley Fulkerson (pictured) and Clark Dean will officially be homeless tonight (at least when not scaling down Buckhead office towers). We chatted with Bradley this morning about his plans to sleep like one of Atlanta's homeless youth for a Covenant House Georgia fundraiser this evening. Bradley is part of the Sleep Out program, an effort to raise awareness and money for the shelter that serves 30 homeless young people every night. He says the goal is to expand the facility to help 45 youths a night by January. For more info, click here.
CREW Highlight Ponce City, Old Fourth Ward
CREW Atlanta heard much about the transformation of The Beltline and the Old Fourth Ward from both The Atlanta BeltLine's COO Lisa Gordon (center) and Jamestown Properties' Annie Evans (far right) during the organization's luncheon earlier this month at Two Urban Licks (with Jackson Spalding's Rachel Tobin moderating). Lisa and Annie say the changes and redevelopment in the area are transforming what was one of Atlanta's most downtrodden neighborhoods into a premier community.