Atlanta Developer Raising $47M In Equity To Build 700 Multifamily Units
An Atlanta-based multifamily and build-to-rent developer is raising an equity fund to capitalize two projects that would bring a combined 725 new housing units to the metro area.
Vida Cos. plans to build a 393-unit townhome and apartment development in Upper Westside and a 332-unit complex across from the Mall of Georgia in Buford.
The developer is hoping to raise $47M from accredited investors toward the projects with Vida Opportunities Fund I, which launched this month backed by $5M in seed funding from high net worth investors, Vida President Joe Martinez told Bisnow.
The equity raised would be leveraged to finance an estimated $214M in construction costs for the two ground-up projects. The capital stack would include $13M from Vida and its general partners, plus additional senior debt and preferred equity, Martinez said.
He added that the 506(c) fund, registered with the Financial Industry Regulatory Authority, has already identified an additional $7M of funding and is in talks for $12M more.
“We think it’s a really great time to get something coming out of the ground,” Martinez said. “That’s really resonated with high net worth individuals. People get there’s a real opportunity while institutional capital is slowly coming back.”
The Upper Westside project, GuildHouse, would have 39 build-to-rent townhouses, a 354-unit apartment complex built around a parking deck, commercial space and a pocket park on a 7-acre parcel at 2085 Marietta Blvd. The project would also feature a coffee bar, coworking spaces, a saltwater pool, a pet spa and a sky lounge.
Carrena Apartments in Buford would be a surface-parked project with one-, two- and three-bedroom units and a similar slate of amenities as GuildHouse, with rents averaging around $2K per month. The project would sit on 11 acres just off Interstate 85 in Gwinnett County.
A Vida affiliate purchased the Carrena site in January for $3.8M and acquired the GuildHouse site in 2023 for $3.7M, according to local property records.
Martinez said Vida decided to issue a private placement of securities to finance the projects because institutional investors aren't as interested in funding new development projects in Metro Atlanta as family offices and high net worth individuals, citing a spate of new supply that hammered market fundamentals in 2024.
That glut of new apartments is abating. As of the end of 2024, developers were underway with more than 19,300 units in the metro area, a 43.8% drop from the same period in 2023 and the first time there were fewer than 20,000 units under construction since the second quarter of 2021, according to Cushman & Wakefield.
Martinez said more people are now renting in the area than the number of units being delivered, which has encouraged Vida to pursue new projects.
Martinez founded Vida in 2021 after working in the development shops at RangeWater Real Estate, Crescent Communities and Northwood Ravin, according to his LinkedIn bio.
Vida has a robust pipeline of projects, including Union Green, a two-building, 295-unit apartment project in Union City being co-developed with Virginia-based Woodfield Development. The project is now in lease-up.
The firm also plans to break ground on garden-style apartment projects called Verona in Fairburn and Solara Powder Springs, both of which will be financed in the more traditional way, Martinez said.
“We're not trying to cram four deals into a fund,” he said.
