PRP Makes First Value-Add Buy In ATL
State Farm. Mercedes-Benz. These are just two examples of why a DC multifamily investor targeted Central Perimeter for its first Atlanta apartment buy.
PRP and Pacific Life Insurance Co recently purchased Savannah at Park Place, a 426-unit apartment project right behind the popular Park Place shopping center and just across the street from Perimeter Mall.
PRP paid $74.5M, or $179k/unit for the circa-2001 six-building, Class-A gated complex from TriBridge Residential. And even at that price tag, PRP still sees Savannah at Park Place as a value-add play, and plans to funnel nearly $4M into renovations of the property, including updates to the individual units.
That, the company hopes, will elevate rents at a time when more jobs are coming to Atlanta, which has seen growth above the national average as of late.
“Rents are right now in the $1.30 [per SF] range,” PRP's Phillip Pitney says. “We hope to bring those up to and be competitive with similar product in this area” at around $1.50/SF.
While this is PRP's first buy of an existing property in Atlanta, it's no stranger to the metro area, having previously JV'ed on developing Ansley at Princeton Lakes and Montage at Embry Hills (above) with Atlanta-based J. Tucker Development Partners.
Phillip says PRP is searching Atlanta for more product, especially in areas seeing significant job growth, but the buying environs are highly competitive.
“We absolutely anticipate finding more properties,” he says. "Next year we hope to acquire two assets in the city."