New York Apartment Investor Re-Enters Atlanta With New Greystar Development
A New York apartment investor has returned to Atlanta's hot multifamily market with a new buy and plans for more.
GAIA Real Estate purchased Station R, a 285-unit, high-end apartment project in Reynoldstown, from Greystar for an undisclosed sum. The project also includes 16K SF of retail along Moreland Avenue and is just a block from the Inman Park/Reynoldstown MARTA station, according to Curbed Atlanta. Greystar completed the project earlier this year.
This is not GAIA's first foray into the Atlanta apartment market. It sold Park Pointe North apartments across from Mercer University a year ago, GAIA Managing Partner Danny Fishman said. It purchased Station R in a partnership with Amitim Senior Pension Funds — one of Israel's largest institutional investment funds — and Psagot Investment House.
The project is nearly fully leased, Fishman said, with a roster of tenants making a strong salary.
“If you look at this specific property, you'd be shocked to see the average income of the average household,” he said. "They make like five times more than what we need to keep them in place. [Credit scores are] not even a consideration."
For GAIA, Station R is part of an investment target marching forward: walkable, high-end, urban apartments in Southeastern markets.
“It's part of our strategy to go to places that are more urban and more walkable and close to public transportation,” he said. “We see it as a big trend. It's strong in the U.S., but it's also very strong in Atlanta.”
Atlanta claims great demographic growth within the urban corridor with a strong record of job growth in recent years. All these factors should continue to fuel apartment demand despite the spate of new units coming online in the next few months, Fishman said.
Fishman said GAIA was in talks to buy another apartment project in Atlanta, but nothing was secured as of press time.