Another West Coast investor has come to Metro Atlanta to buy apartments with 1031 exchange capital.

California-based JJM Investments purchased Legacy in College Park, a 1970s-era, 700-unit apartment complex in College Park for $49M. JJM bought it from a local investor under the name DRI Legacy, Berkadia Director Matt White said.

White brokered the sale along with Berkadia Senior Managing Directors Paul Vetter and Andrew Mays and Senior Director Judy MacManus.

JJM purchased the property in a 1031 exchange after selling a 100-unit apartment complex in Snoqualmie, Washington, for $37.7M and The Vinings, a 106-unit project in Cobb County for $16M. JJM was able to buy more apartment units in the exchange with the help of the Washington state apartment sale, White said.

1031 exchanges, also called like-kind exchanges, allow real estate investors to sell one asset — in many cases apartment buildings or single-tenant retail properties — and funnel those proceeds by buying similar assets within 180 days. By doing so, investors can avoid paying capital gains taxes.

White said JJM's investment in Atlanta is part of a  larger trend of 1031 exchange investors looking to sell properties in higher-priced and higher-tax markets and buy in the Sun Belt.

“I think there is some added urgency now more than ever if you were considering a sale,” DXE Properties co-founder Josh Eitingon previously told Bisnow, adding that President Joe Biden's potential plans for tax reform, which includes changes to the 1031 exchange program, are creating some urgency among investors to make deals.

DXE purchased The Vinings from JJM in its own 1031 exchange.