Cleveland-based Citymark Capital has teamed up with InterCapital Group, based in Houston, on the purchase of the two-property, 554-unit Evergreen apartment portfolio in the Atlanta suburb of Fairburn, Ga., for $69.4 million.
Fairburn is about 20 miles southwest of downtown Atlanta. The location is also near Aerotropolis Atlanta, a growing mixed-use development that’s trying to turn airport proximity into a feature instead of a bug. Development has been on an upswing around the Hartsfield-Jackson Atlanta International Airport, which is currently undergoing its own $6 billion expansion and modernization.
“Atlanta’s strong job growth, which is expected to continue for the next decade, has fueled rental demand, particularly in the moderately priced submarkets like South Fulton County,” said Citymark founder and CEO Daniel Walsh. “Leveraging on our partner’s experience and economies of scale, where they own and operate more than 5,500 units in the Atlanta metro, we plan to create housing environments that our tenants will be proud of, while at the same time generating attractive risk adjusted returns for our institutional investors.”
The property was already undergoing renovations by its previous institutional owner, and the joint venture will continue with a capital improvements program that is focusing on upgrading flooring, appliances, countertops, hardware, and lighting. All common areas are getting a makeover with pet and leisure amenities being added.
The 310-unit Evergreen Park and 244-unit Evergreen Terrace are gated, garden-style communities, about 5 miles apart. Evergreen Park and Evergreen Terrace, built in 2002 and 2008, respectively, include a mix of one-, two-, and three-bedroom apartment homes. Evergreen Terrace also offers a four-bedroom floor plan. Community amenities include swimming pools, tennis courts, outdoor grilling areas, a putting green, children’s playgrounds, and fitness centers. The communities were about 95% occupied at closing.
The Atlanta-based CBRE team of Kevin Geiger, Paul Berry, Malcom McComb, Shea Campbell, Ashish Cholia, and Colleen Hendris represented both parties in the transaction.
