Real estate development firm Kaplan Residential has sold Generation Atlanta, a 17-story luxury high-rise in downtown Atlanta, to Montreal-based Frankforter Group, a real estate investment and asset management firm, for $126.9 million. This transaction is said to be the largest multifamily sale in downtown Atlanta’s history, according to the firms.
The 336-unit Generation Atlanta, which was completed last year, is comprised of studio to two-bedroom apartments ranging between 459 and 1,512 square feet, with rents ranging from $1,600 to $3,650. Units feature quartz countertops, custom cabinetry, kitchen islands, stainless steel appliances, spa-inspired bathrooms, full-size washers and dryers, private balconies, and smart keyless entry. High-end amenities include an outdoor theater, a resort-style rooftop pool and sundeck, a bowling alley, electric-vehicle charging stations, a coffee bar, a state-of-the-art fitness center, a yoga studio, and the SkyBar Lounge with skyline views.
According to Kaplan Residential, the development was the first in the Southeast to utilize the Prescient light-gauge steel structural system, which reduced the construction timeline and its associated cost by nearly 25%.
Kaplan Residential acquired the approximately 1.8-acre site for Generation Atlanta in 2018 for $6.4 million. Partners on the modern high-rise included Niles Bolton Associates, Focus Design, and Clark Building Group. Additional support in the development process was provided by Banco Santander, Parse Capital, Seyfarth Shaw, and Cushman & Wakefield.
“With the same enthusiasm and pioneering approach my father had 40 years ago working closely with mayor Andrew Young, we designed Generation Atlanta to further propel the city’s rapid population growth and residential expansion with the help of mayor Keisha Lance Bottoms,” said Nathan Kaplan, partner of Kaplan Residential. “Generation Atlanta and its sale serve as a catalyst for more businesses, developers, and forward-thinkers to invest in downtown Atlanta with confidence in the value proposition.”
The transaction marks the first multifamily tower acquisition in downtown for Frankforter Group, but the firm has a strong presence in the greater metro area with more than 2,000 units in its portfolio.
“This project tightens the presence of our group in the Atlanta area. We are very proud of acquiring such an irreplaceable asset that is poised to be a milestone in the multifamily residential landscape of downtown Atlanta,” said Stephane Benalal, director of acquisition at Frankforter Group. “Furthermore, this property represents the type of assets we are actively pursuing in the major metro areas across the Sun Belt states, fueled by a $2 billion acquisition appetite.”
In addition to the Generation Atlanta transaction, both firms have seen recent activity in the Southeast. Kaplan Residential sold Square One, a 203-unit luxury community in Sandy Springs, Georgia, for $56.2 million, as well as purchased two parcels of land in the Atlanta area for more than $11 million for future build-to-rent communities. In late December, Frankforter Group announced that it had acquired The Julian Apartments, a 409-unit Class A++ 14-story multifamily community in downtown Orlando, Florida, for $142 million.
