200+ units added to workforce housing portfolio; over $50 million invested in 2021.
ATLANTA — Crown Bay Group, LLC (Crown Bay), an Atlanta-based multifamily real estate investment firm, closed out 2021 with the acquisition of a two-property multifamily housing portfolio totaling over 200 units in East Point, Georgia. The transaction was finalized with a private Atlanta real estate investor in December for $20.45 million. No additional transaction details are available.
“We feel fortunate to have been able to take advantage of the rare opportunity to acquire two stabilized, cash-flowing properties with plenty of operational upside,” says Steve Firestone, founder and principal for Crown Bay Group. “We plan to make immediate improvements to the properties that will benefit both current and future residents and improve net operating income. What’s more, we see plenty of cross-selling opportunities between the properties, given their distinct floor plans and price point differentials.”
Currently 98 percent leased, Bullock Habersham Apartments is a townhome-style apartment complex featuring some of the largest two-, three– and four-bedroom units in the area. The 128-unit complex features a swimming pool, business center, leasing and management office, 24/7 security monitoring and a MARTA bus stop at the property’s entrance. The property, which was built in 1969, is located at 3251 Washington Road in East Point.
Dodson Courtyard Apartments, at 3520 Dodson Drive Connector in East Point, is a boutique two– and three-story apartment complex with 75 one– and two-bedroom units. Its amenities include an onsite laundry facility, courtyard and 24/7 security monitoring. An adjacent public park with tennis courts and playgrounds adds to the community’s features. Built in 1967, this property is currently 100 percent leased.
“We were able to gain access to this off-market opportunity through long-term industry relationships and acquired it at a very attractive basis,” continues Firestone. The properties are .5 miles from each other in the South Fulton submarket, a short commute to southwest Atlanta’s main economic drivers.
Crown Bay is planning $1 million of capital improvements at the properties. Improvements to unit interiors are expected at both, while for Bullock, additional improvements include upgrading the curb appeal as well as building infrastructure.
“Our goal is to increase the net operating income by increasing in-place rents and optimizing property operations,” notes Firestone. “We expect to sell the properties as a package in three to five years.”
Through acquisitions like these, Crown Bay Group offers investors the opportunity to diversify their investment portfolios to include a real estate asset that is historically stable and recession proof. Metro Atlanta’s workforce housing fundamentals have remained strong throughout the pandemic, making these properties, as well as Crown Bay’s August acquisition of Netherley Park, a solid investment.
According to Yardi, asking rents have increased approximately 12 percent year-over-year since June 2020 in the “renter by necessity” category. The Atlanta occupancy rate, across all classes, is 96.1 percent, with Class B/C properties leading the way. Upward pressure on lower-end wages and lack of new housing supply also supports rent increases, particularly since many in-place rents are below market level.
About Crown Bay Group, LLC
Founded in 2013, Crown Bay Group is a privately-held real estate investment and asset management firm based in Atlanta. The firm specializes in the acquisition, operation, management and disposition of multifamily properties throughout the Southeast. Since its inception, Crown Bay has owned and operated a multifamily portfolio of 3,655 units valued at more than $270 million.