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Just how well do multifamily value-add investments in Metro Atlanta do? One major real estate investment trust's bet on a Sandy Springs apartment complex has netted it more than $40M in five years.
Independence Realty Trust announced that the value for The Pointe at Canyon Ridge apartment complex off Roswell Road jumped from $48.6M in 2015 to $92.2M as of September 2020 after a major overhaul, according to a presentation filed with the Securities and Exchange Commission.
IRT Living infused more than $5M in 2018 into renovations on the property, which was built in 1986, including clubhouse renovations, updated pools and outdoor amenity improvements. Since then, the REIT was able to push rents up 40%, from $802 per month to $1,119 per month, the company reported. That helped pump revenues up 39% to $6.8M.
IRT owns six apartment complexes in Metro Atlanta, including Waterstone at Big Creek in Alpharetta, Crestmont Apartment Homes in Marietta and North Park at Eagle's Landing. IRT focuses mainly on investing in multifamily properties in the Sun Belt region.
But Atlanta accounts for its largest portion of rents, according to SEC filings, tallying more than 14% of the REIT's net operating income on all its properties across the country. The company is spending $66M on renovating more than 7,100 units across its U.S. portfolio. IRT expects upward of a 20% return on those units with better rents, the company reported.
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