Two out-of-state investors have made bets on suburban multifamily in Atlanta.
Miami-based Atlantic|Pacific Cos. and San Diego-based Fairfield Residential Co. purchased apartments outside the urban core of Atlanta, part of a trend of investors looking to buy into the metro market as pricing continues to rise in the city.
Atlantic|Pacific Cos. picked up The Atlantic Aerotropolis, a 269-unit Class-A apartment community in Hapeville, near Hartsfield-Jackson Atlanta International Airport and the new North American headquarters for Porsche. Terms of the sale were not disclosed.
Fairfield purchased Trees of Avalon, a 500-unit apartment community in McDonough for more than $58M from Watkins Real Estate Group. The price means Fairfield paid more than $117K per unit.
Cushman & Wakefield Vice Chairman Chris Spain and Director Alex Brown brokered the sale.
“Demand remains healthy for assets in Midtown and Buckhead, but limited listings and higher prices are pushing many investors to consider assets in outlying areas,” Marcus & Millichap officials said in a recent report. “During the last 12 months, sales velocity has increased significantly in outlying Gwinnett County, particularly near Lawrenceville and Norcross.”
Marcus & Millichap also said out-of-state investors, particularly from California, New York and Florida, have been particularly active in Atlanta, where average rents continue to climb and yields are stronger than in their home markets.
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