ATLANTA, GA - Admiral Capital Group and Elite Street Capital recently announced the successful sale of The Fields Peachtree Corners, a 490-unit multifamily property located in Norcross, Ga., in the Atlanta MSA. The asset was sold for $51.2 million, representing an increase of over 40% in value.
Admiral and Elite acquired the apartment community for $36.3 million in May 2016 through a joint venture. The investment provided an opportunity to purchase a well-located asset at a discount to replacement cost that provided a value housing alternative to the rapidly growing workforce in the fourth largest manufacturing and distribution center market in the United States.
During its ownership, the joint venture set out to improve the aesthetics and overall experience for the tenants. The partnership repositioned the property by curing deferred maintenance, enhancing the exteriors and upgrading unit interiors. Select improvements included fitness center, pool area and other amenity upgrades, replacement of wooden decks and landscaping improvements. Interior renovations included replacing countertops, modernizing kitchen cabinets, appliances and flooring and renovating bathrooms. Overall, the upgrades repositioned the property to compete with top quality assets with higher overall rents.
“Our strategy is to identify under-capitalized assets in markets with a supply and demand imbalance,” said Dan Bassichis, co-founder of Admiral Capital Group. “Atlanta has been a key market behind Admiral’s growth over the past 10 years and this property was an ideal fit for our value-add strategy. We couldn’t be more pleased with the execution with Elite.”
Admiral has acquired eight real estate assets to date in Atlanta and including this asset, and has five realizations. Nationally, Admiral has acquired over 12,400 multifamily units, 1.1 million square feet of office, 775,000 square feet of retail and 900 hotel keys. Admiral and Elite also purchased The Fields Peachtree Corners, formerly known as One Ashley Lakes, in June 2017.
"Peachtree Corners' below market acquisition, strategic implementation of a value-add business plan, and a competitive sale process generated a truly successful investment,” said David Whitby, Elite's CEO. “We are thrilled to have partnered with Admiral on this transaction.”
Dan Phelan, a commercial real estate broker with Newmark Knight Frank, handled the Fields Peachtree Corners sale.