Atlanta is getting ready to close another strong year for multifamily investment. While last year more than $6.7 billion in properties changed hands, this year, transactions closed in the top 10 most transacted submarkets alone mounted to $2.2 billion weeks before December 31st.
Urban areas such as Sandy Springs/Dunwoody and North Decatur/Clarkston/Scottdale were home to the priciest transactions, but the busiest submarkets were, in fact, those in suburban areas.
The following list highlights the top 10 Atlanta submarkets ranked by total investment volume. Data is provided by Yardi Matrix and is based on transactions closed in the metro area between January and December 2017.
10. Avondale Estates/East Belvedere Park
3465 Kensington Road, Decatur, Ga.
Five properties and 1,547 units changed hands in this submarket, which translates into approximately $49.8 million in sales volume. Investors were attracted by the area’s older, value-add buildings as these have been proven to generate the greatest returns. The largest transaction closed in Avondale Estates/East Belvedere Park was Oak Tree Villas at 3465 Kensington Road. Code Capital Partners acquired the community in May from GFI Capital Resources Group for $36.3 million. Oak Tree Villas comprises 1,045 units and features amenities including a waterscape, fitness center, clubhouse, playground and two swimming pools.
9. Tucker/ Stone Mountain
1310 Wood Bend Drive, Stone Mountain, Ga.
Among the advantages that this Atlanta submarket presents to multifamily investors are an old housing stock, historic downtowns and scenery. Tucker/ Stone Mountain is one of the nine areas in greater Atlanta closing the year with more than $100 million in transacted properties. Of the six communities which changed hands, the most notable one is the 989-unit property at 1310 Wood Bend Drive. The property cost Emerald Equity Group $38 million back in April. The seller was Robbins Electra.
1420 S. Hairston Road, Stone Mountain, Ga.
Redan’s population grew steadily in recent years, which explains its position in the top 10 list of most transacted submarkets. The eight communities trading this year in the area encompass a total of 2,161 units and account for nearly $143 million in investments. The 822-unit Reserve at Stone Creek represents the top sale year-to-date. Asden Properties bought the property from Robbins Electra in September for $49 million.
7. Marietta SW
991 Wylie Road S.E., Marietta, Ga.
More than 60 percent of this area’s housing stock consists of multifamily properties, the majority being built between the 1970s and 1990s. Eight communities changed hands in 2017, translating into a total of $163.6 million in investments. Element 41 at 991 Wylie Road S.E. tops the list, with an acquisition price tag of $55 million. A joint venture between Oak Residential Partners and Atlantic Creek Real Estate Partners purchased the 494-unit community from Carroll Organization in January.
3470 Mt. Zion Road, Stockbridge, Ga.
Although at a tie with Marietta SW in terms of total sales volume—$163.6 million—Jonesboro/Bonanza had more transactions closed in 2017 (11 properties). The area consists of mostly detached homes, the apartment buildings being more recent additions. One example is Marbella Place, a 368-unit community completed in 1998 at 3470 Mt. Zion Road in Stockbridge, Ga., which marked the priciest transaction closed in the submarket this year. Robbins Electra paid Bridge Investment Group Partners $32.5 million for the property in February.
3925 Satellite Blvd., Duluth. Ga.
The submarket attracted $166.8 million in multifamily investments in 2017. Seven properties found new owners, with Robbins Electra being one of them. The company announced toward the beginning of the year that it planned to spend $1 billion in acquiring communities in Atlanta and several other markets across the nation. Robbins closed the largest transaction in the Duluth/Norcross submarket, a 520-unit community at 3925 Satellite Blvd. ($47.8 million).
4. North Vinings
2121 Windy Hill Road, Atlanta
Only three properties traded in North Vinings this year, but their combined sale totaled $173.9 million, which puts the submarket in the fourth spot on our list. The largest multifamily transaction was that of Ashford Retreat, a 654-unit community located at 2121 Windy Hill Road in Marietta, Ga. Wilkinson Corp. bought the property from RADCO Cos. for $61 million.
1100 Indian Trail Lilburn Road, Norcross, Ca.
With 13 properties involved in transactions, Lilburn is Atlanta’s most active submarket. The total sales volume, $317.1 million, positions it on the third place, however. The largest transaction closed in Lilburn this year involves the 467-unit community at 1100 Indian Trail Lilburn Road. The property entered RADCO Cos.’s portfolio in exchange of $41.2 million. The new owner has closed several deals this year, which secured the company’s third spot in our top 10 list of Atlanta property investors.
2. North Decatur/Clarkston/Scottdale
855 Emory Point Drive, Atlanta
The six properties sold in North Decatur/Clarkston/Scottdale in 2017 totaled 1,826 units and led to a combined sales volume of $328 million. Two thirds of the total investment—$199 million—came from the sale of Gables Emory Point, a 750-unit community at 855 Emory Point Drive. LivCor snagged the 2015-built community from Gables Residential in May.
1. Sandy Springs/Dunwoody
2075 Powers Ferry Road S.E., Atlanta
The most transacted Atlanta submarket by sales volume in 2017 is Sandy Springs/Dunwoody, which attracted investments totaling $579.7 million. Of the 10 properties changing hands in the area, the priciest was Rockledge at 2075 Powers Ferry Road S.E. Highland Capital Management acquired the 708-unit community from LivCor for $113.5 million. The property features a fitness center, business center, clubhouse, tennis and volleyball courts, seven swimming pools and a media room.
Images courtesy of Yardi Matrix