VIRGINIA BEACH, VA (March 22, 2021) – Croatan Investments (“Croatan”), a multifamily investment manager for private wealth, institutional, and retail capital, acquired SkylineATL Apartments, a stabilized 225-unit midrise rental property located in Atlanta, GA. The investment was a co-investment effected for clients of Croatan Capital Advisers, LLC, including Croatan Multifamily All-Weather Fund I, LP. The acquisition was facilitated with a 3-year floating rate loan from ACRES Capital with 2 one-year extensions.1
“Our ability to buy high-quality urban core properties at temporarily discounted valuations due the impact of COVID creates an attractive investment opportunity,” said Paul Van, Chief Executive Officer. “When combined with our $4.6 million renovation plan, which includes upgrading all units to finishes comparable to newly delivered product in the submarket and reimagining the amenities, we believe we can increase rents while maintaining a price point below comparable products in the Midtown and the Old Fourth Ward submarkets. We believe SkylineATL Apartments is very well positioned to produce attractive returns for our investors.”
This 5-story midrise asset, built in 2007, includes an attached parking garage and rooftop amenities and is conveniently located on Piedmont Road in the SONO neighborhood. The property sits across from the Atlanta Civic Center site, which is scheduled to be transformed with a $300 million public-private partnership redevelopment effort. In addition, Norfolk Southern is building its new corporate headquarters two miles north of the property while Emory University Hospital Midtown and Winship Cancer Institute of Emory University are collaborating to build a 17-story cancer research facility a half-mile to the northwest.
The $4.6 million capital improvement plan at the property will be comprised of $3 million for interior renovations, including quartz and granite countertops, new cabinets, updated fixtures, new faux-wood flooring, and smart home technology, and $1.6 million for renovating the rooftop fitness center, re-purposing the ground-floor fitness center, refreshing the resident lounge, and updating the rooftop with new grilling stations and lounge furniture among other improvements.
1 This does not constitute an offer to sell or the solicitation of any offer to buy securities, nor does it constitute investment advice.