Passco has bought into Atlanta's multifamily market again with a big ticket item.
The California-based investor purchased Two Blocks, a 400-unit Class-A mid-rise project in Dunwoody for $72M, or $180k/unit. And, even at that price, Passco's Colin Gillis says there are still value-add opportunities.
"There is currently a $200 gap between rents at Two Blocks and assets of similar vintage product 1.5 miles west off of Ashford-Dunwoody Road," Colin says. And rents are even $500/month lower than newly developed properties along Hammond Drive.
"There is a significant opportunity to cut into this spread with the help of a light value-add initiative," which will include modernizing amenities and minor exterior renovations.
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Located at 4000 Dunwoody Park, Two Blocks is off Chamblee-Dunwoody Road among a nest of other multifamily properties, including Terraces of Dunwoody, Madison Square at Dunwoody, Dunwoody Gables and Camden Dunwoody Apartments.
The project was developed by Pollack Shores in 2008, and has seen an 11% rise in rents for the past two years, with an occupancy hovering around 95%, Colin says. ARA Newmark's John Weber, Dan Phelan and Bo Moore brokered the transaction, the fourth for Passco in Atlanta.
