Saturday, March 17, 2012

Marcus & Millichap Arranges $35.75 Million Multifamily Portfolio Sale in Atlanta


ATLANTA, GA – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has sold the Tempo Portfolio (top left photo), a 12-property 1,188-unit multifamily portfolio located on Buford Highway NE and Lenox Road NE in Atlanta.

The sales price was $35,752,395.

Paul Vetter (middle right photo) and Andrew Mays (middle left photo), vice presidents investments in the Atlanta office of Marcus & Millichap, represented the seller, Atlanta-based Tempo Properties. Vetter and Mays also represented the buyer, a prominent national real estate company based in Yakima, Wash. that currently owns more than 2,000 units in metro Atlanta. 

“The long-term investment appeal of the properties in this portfolio is primarily their outstanding locations,” says Vetter. “All are located within a one-mile radius of each other. The most notable site is Parkway Apartments, which is located at the intersection of Buford Highway and Lenox Road in Buckhead,” adds Vetter.

“In addition to their prime locations, the properties offer tremendous upside through new management, capital improvements, repairs and renovations,” says Mays. “The properties were held by the previous owner for between 30 and 40 years.

“Prior to our getting this transaction to an agreed upon LOI, the portfolio had been under contract with another buyer and an intermediary other than Marcus & Millichap,” Vetter continues. “The portfolio became available at the right time for both of our clients and we were able to close within 60 days.”

The properties in the portfolio are:

  • Cabana Apartments, 33 buildings, 135 units (lower right photo) 
  • Cross Keys Apartments, 16 buildings, 64 units (lower left photo) 
  • Hallmark Apartments, 12 buildings, 154 units
  • Parkway Apartments, 10 buildings, 111 units
  • Tempo 2000 Apartments, 11 buildings, 128 units
  • Continental Apartments I and II, 10 buildings, 158 units
  • Dover Station Apartments, 13 buildings, 135 units
  • Majestic I, seven buildings, 72 units
  • Majestic II, three buildings, 62 units
  • Monaco Apartments, eight buildings, 60 units
  • Montego Apartments, 11 buildings, 108 units

“The Atlanta apartment market appears to be well positioned for additional declines in vacancy and steady rent growth over the next several quarters as the number of new construction starts remains historically low and prospective single-home buyers face stringent mortgage underwriting, high down payments and stagnant incomes that will keep them in rental housing for the foreseeable future,” Vetter concludes.

The Tempo Portfolio sale is part of a strong first quarter of metro Atlanta multifamily property sales for Mays and Vetter.

 In addition to the 12 properties in the Tempo Portfolio, the pair has brokered four other local transactions so far in 2012, including Bryton Hill, a 204-unit apartment property situated in the heart of the same submarket as the Tempo Portfolio: the intersection of Buford Highway and Clairmont Road. Bryton Hill sold for $6,625,000. The buyer was New York-based Peak Capital Partners.

The other three properties the two have transacted since the first of the year are 170-unit Water Vistas, Highland Woods, which has 224 units and 216-unit Falcon Ridge.


Contact: Stacey Corso, Public Relations Manager, (925) 953-1716

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