DALLAS, TX - Milestone Apartments Real Estate Investment Trust announced that it has entered into an agreement to purchase the Village at Almand Creek, a 236-unit, Class A multifamily apartment community located in the Conyers submarket of East Atlanta, Georgia, for a purchase price of $24 million, representing an estimated year one capitalization rate of 6.7%. The Acquisition is expected to be accretive to the REIT.
"Almand Creek is another off-market acquisition sourced to the REIT through our network of industry relationships. We look forward to increasing our presence in the Atlanta market as we continue expanding and further diversifying the REIT's portfolio. With over 138,000 jobs added since 2011, Atlanta has one of the fastest growing economies in the country," said Robert Landin, CEO of Milestone.
Almand Creek was built in 2002 and is currently 94.9% occupied, with average monthly rents of approximately US$985. The Property's average in-place rent per square foot is consistent with the REIT's portfolio and Milestone's middle market strategy. The Property's average in-place rents are higher than the REIT's portfolio average in part due to a higher proportion of two and three-bedroom apartment suites. The Property has convenient access to major transportation corridors, including I-20 providing direct access to downtown Atlanta, and I-285, Atlanta's perimeter interstate highway. It is located within close proximity to several large employers, including Rockdale County Public Schools district administration, Rockdale Medical Center and AT&T. Almand Creek is the nearest multifamily community in the vicinity of the large, new Baxter International facility currently being built in nearby Covington, Georgia. As the Property is located right off of Highway 138, Conyers' major retail corridor, residents have a wide variety of shopping, dining and entertainment options nearby. Almand Creek features extensive amenities consistent with the REIT's established portfolio, including a resort style pool, tennis court, an outdoor children's playground and a nature trail.
The Acquisition, which is subject to customary closing conditions, is expected to close by May 1, 2015. The REIT will disclose the final details of the purchase, including financing terms, following closing of the Acquisition.