Cheshire Bridge Project Mystery Buyer Revealed
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Atlanta-based Catalyst Development Partners, in a JV with Bluerock Residential Growth REIT, is planning to develop a 285-room high-end apartment project on the land being sold by Crown Holdings Group. As we first reported here, Crown has filed permits with the City of Atlanta to raze a 25k SF empty commercial building at 2470 Cheshire Bridge Rd, next to CB Loft, that will pave the way for the five-story multifamily project. Bluerock reports that the project, called Cheshire Bridge Apartments, will cost $48.2M, or $169k/unit, and will return a 7% cap at stabilization, based on projected costs and rents. The REIT is partnering with Catalyst, a firm founded in 2011 by two former Julian LeCraw execs, Mark Mechlowitz and Rob Meyer, who we profiled here.
The developers say the project will involve studio, one- and two-bedroom units averaging 870 SF each. And Bluerock, which is injecting $15M in preferred equity in the project (which can later be converted to joint ownership rights), offers a hint of how the JV could eventually exit the property. Aside from a resort-style pool, and fitness and media centers, Bluerock reports that the interiors will be condominium quality. While not expressly stated in company info, many multifamily developers design units to be able to be converted to condo ownership. Since starting, Catalyst has invested in and/or developed a number of local apartment projects, including ENSO Apartments in Glenwood Park (here).