NEW YORK, NY - W. P. Carey Inc., a global net-lease real estate investment trust (REIT), announced that its managed non-traded REIT, CPA :18 – Global, has acquired a 97% interest in two income-generating multifamily properties in Georgia: Dupont Place Apartments, a 217-unit property located in Tucker and Gentry's Walk, a 227-unit property in Chamblee. Co-investment partners, Silverpeak Real Estate Partners and Carroll Organization, own the remaining interest. The total purchase price was approximately $46 million.
W. P. Carey's Co-head of Global Investments, Gino Sabatini, commented: "These investments represented an opportunity to secure assets with strong in-place cash flow and the potential to enhance future returns through targeted capital improvements and the installation of a professional local asset management team. The transactions are consistent with CPA :18 – Global's strategy of acquiring income-generating assets, backed by solid real estate, with significant value-add opportunities.
"Additionally, these transactions allowed us to apply our underwriting and asset management capabilities to the multifamily sector. Both investments are examples of how we are well positioned to access a wider pool of opportunities which meet our established investment criteria and provide strong risk-adjusted returns to CPA: 18 – Global's investors."
Tucker, GA is located 3 miles east of I-285 and is approximately 11 miles northeast of Midtown Atlanta. Chamblee, GA is located just inside the I-285 loop and is approximately 10 miles northeast of Midtown Atlanta. Both properties are within close proximity to major office submarkets including, Northlake, Perimeter Center and Buckhead.
Atlanta's Class-A multifamily vacancy rate was 4.3% as of June 2014. Effective rental rates for Atlanta Metro are forecasted to increase by approximately 2.9% per year over the next 5 years. Over the past five years, Atlanta was the 4th fastest growing city by population in the U.S. and its 2.6% annual employment growth exceeds the 1.7% average for 82 major U.S. markets.
Headquartered in Atlanta, Carroll Organization is a fully-integrated multifamily management company that employs over 400 associates and manages a portfolio of more than 16,000 units across 6 states.
Silverpeak is a full-service, diversified real estate investment and advisory business with about $14 billion of gross real estate assets under management and manages real estate on behalf of commingled funds, separate accounts and for its own account.