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A Baltimore-based real estate investment firm has entered the Atlanta apartment fray with a big Buckhead apartment buy.
Continental Realty Corp. bought Millworks, a 345-unit apartment project at 1888 Emery St., sandwiched between Howell Mill and Collier roads, overlooking Interstate 75. Continental paid $80M, or more than $230K/unit, for the property from Pollack Shores. JLL Managing Directors Derrick Bloom, David Gutting and Associate Brandon Beatty brokered the sale.
Continental purchased the project, completed earlier this year, with its $165M fund focused on multifamily and value-add retail throughout the mid-Atlantic and Southeast regions, company officials said. This is the fund's sixth apartment purchase.
“The property was acquired substantially below replacement costs and has accomplished among the most compelling lease-ups in the market with an average of more than 30 leases executed monthly since February. This exceptional velocity was achieved while offering the lowest concessions in the submarket,” Continental CEO J.M. Schapiro wrote in an email. “We consider this a one-of-kind, landmark acquisition in the Atlanta market with effective rents increasing by approximately 8% since March.”
Schapiro also said more than 300,000 vehicles pass by the project daily, giving it a marketing boost. Plus, given Millworks was just recently completed, the asset will have “higher cash flow growth” with less money pumped into the asset to attract residents, he said.
“This project provides our company a strong foothold into the greater Atlanta metropolitan area that experienced the second-highest growth rate in the country, with more than 80,000 new residents entering the region within the past year,” Schapiro said.
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