Source: Praxis Capital / #Apartments #Multifamily
ATLANTA, GA - San Francisco area based Praxis Capital announced that it has added to its Atlanta portfolio through the recent acquisition of the 132-unit Tara Hill Apartment Homes and the 200-unit Flint River Apartment Homes, both in Jonesboro, Georgia. Praxis plans to build a portfolio of approximately 2,000 units in the greater Atlanta market.
The Praxis executive team brings more than $6.3 billion of transactional experience in the multifamily sector, including ownership/management of more than 125,000 apartment units. Praxis seeks to build a large portfolio of Class B/C workforce housing, consistently unlocking embedded value in multifamily real estate. Praxis also looks to expand its relationships with Family Office and Institutional JV Equity sources.
Using the conservative underwriting and extensive due diligence for which Praxis is known, the firm performed an exhaustive search before seizing these high potential opportunities.
"We've had tremendous success employing similar strategies with properties in this and other states and this property holds promise for excellent cash flow with upside potential," says Brian Burke, President of Praxis Capital. "We foresee these as very desirable properties for both our residents and investors."
The submarket's annual rent growth rate of 6.8% was well above the market average of 3.0%. Out of the 20 submarkets in the market, the Clayton submarket ranked 1st for quarterly effective rent growth and 3rd for annual effective rent growth for 1Q18. Annual effective rent growth is forecast to be 5.3% in 2018, and average 3.8% through 2018 to 2020. Praxis plans to invest nearly $3 million to renovate and upgrade the properties.
The properties are being managed by Praxis' wholly owned subsidiary, PM Residential Management LLC.