Toll Brothers, Inc. (NYSE: TOL), through its Toll Brothers Apartment Living® rental subsidiary, and an affiliate of global investment firm The Carlyle Group (NASDAQ: CG), have announced the formation of a new joint venture to develop Osprey, a 320-unit luxury apartment community in Atlanta’s West Midtown neighborhood.
The joint venture has secured a construction loan facility from BB&T Real Estate Funding LLC, serving as administrative agent, and Comerica Bank. The debt and equity financing were arranged by Toll Brothers’ in-house finance department. Toll Brothers Apartment Living will manage the development, marketing, leasing and property management of Osprey.
Osprey is located on a 2.07-acre parcel within a mixed-use community in the West Midtown neighborhood of Atlanta, home to a variety of award-winning dining, upscale boutique shopping, entertainment, and top-of-the-market creative office spaces. The site offers excellent transportation options to job centers in Buckhead, Midtown, and Downtown. Osprey will benefit from Atlanta’s strong employment base including Fortune 500 companies such as NCR, AT&T and Coca-Cola. The nearby presence of Georgia Tech has helped spawn a culture of tech innovation, incubation and entrepreneurship in the West Midtown neighborhood.
A 12-story residential tower, Osprey will offer views of the Atlanta skyline and a top-floor private sky lounge with roof terraces, dining room, exhibition kitchen, and art exhibit. Amenities will include a resort-style pool, fitness center, club room and coffee bar, co-working space, courtyards, and a 501-space parking garage. Leasing and first move-ins are projected for early 2020. Osprey will be one of the first luxury rental projects to deliver in the epicenter of West Midtown.
Charles Elliot, president, Toll Brothers Apartment Living, said, “We are excited to be a part of the growth of West Midtown. Osprey will elevate the caliber of luxury residential and mixed-use offerings in the submarket, creating a new dynamic destination.”
Fred Cooper, Toll Brothers’ senior vice president for finance, international development and investor relations, said: “Osprey is the second and newest project Toll Brothers Apartment Living is building in Atlanta: In total, we currently have 668 units under construction in this market. Nationally, we have a pipeline of nearly 19,000 units either in leasing, under construction, or in development so we will continue to seek out great partners such as Carlyle and lenders such as BB&T and Comerica to support us as we grow our rental platform.”
Brian Nelsen, managing director at The Carlyle Group, said, “We are excited to partner with Toll Brothers Apartment Living, a leader in multifamily and mixed-use development, and to be part of West Midtown’s continued transformation where this project will meet rapidly growing demand for both residential and retail space. We look forward to identifying additional opportunities in the fast-growing Atlanta metropolitan area and beyond.”
Carlyle’s equity for this investment came from the Carlyle Realty Partners VIII fund. Financial terms of the transaction were not disclosed.
