GEORGIA — A joint venture between Washington, D.C.-based RSE Capital Partners and Tampa-based Carter Multifamily has acquired a portfolio of 11 apartment communities located across five cities in Georgia for $202.5 million. The seller was Savannah-based Kole Management.
The new ownership will undertake a capital improvement program that will upgrade the properties’ unit interiors and amenity space. In announcing the value-add deal, the joint venture cited the strong job growth that is occurring throughout Georgia and the limited supply of quality workforce housing as the key driving forces behind the acquisition.
The portfolio totals 1,966 units in the Class B and C spaces. Specifically, three of the properties totaling 438 units are in Savannah; three communities featuring 382 units are in Garden City; three assets comprising 716 units are in Macon; one property totaling 240 units is in Canton; and one community featuring 200 units is in Augusta.
The Savannah properties were all built between 1969 and 1978 and feature amenities such as pools and playgrounds. Each of the Garden City communities was built in the late 1980s and offers amenities such as pools, playgrounds, sport courts and fitness centers. Garden City is located along the eastern coast near Savannah.
Among the Macon properties, one asset, Riverstone, was built in 2012. The other two Macon communities, Legacy at River Crossing and Falls at Spring Creek, were constructed in 1987 and 1992, respectively. All three properties features modern amenities such as a business center and a resident lounge in addition to a pool, fitness center and playground. Macon is located about 90 miles southeast of Atlanta.
The Canton and Augusta properties, Heritage at Riverstone and Ten35 Alexander, respectively, were both built in the early 2000s. Canton is located about 40 miles northwest of Atlanta, and Augusta is located approximately 150 miles east of the state capital.
Melissa Marcolini-Quinn and Lee Weaver of NorthMarq arranged debt and equity financing for the transaction, with debt being sourced through Freddie Mac’s Value Add Green Advantage program. The package included $110 million in new debt and joint venture equity.
In addition, the joint venture will bring management operations for the portfolio in-house and implement energy- and water-saving features.
— Taylor Williams