37th Parallel Properties (“37th Parallel”) is pleased to announce the acquisition of Parkside Vista, a 240-unit, 2007-built multifamily asset located in Atlanta, GA on behalf of their investors and joint venture partner, Apta Properties. With this acquisition, 37th Parallel has acquired over 500 units representing over $100 million in value in the Atlanta MSA in the last twelve months.
“We are excited to add Parkside Vista to our growing portfolio, a quality asset in one of the most transformational nodes in Atlanta,” said Dan Chamberlain, Managing Partner. “Atlanta’s affordable, pro-business environment has driven significant job and population growth alongside industry diversification. The property is located near 285 and I-85 North East in the I-85 corridor, a booming economic corridor that has been the leader in population and employment growth in the Atlanta MSA for the past decade. Additionally, roughly three miles south of the property is Assembly Yards, a multi-billion dollar, 165-acre mixed-use redevelopment that should spur continued growth in Northeast Atlanta,” says Chamberlain.
The property benefits from easy access to several of the region’s most powerful economic drivers, such as Perimeter Center (36 million sq ft office), Buckhead (21 million sq ft office), Century Center (2 million sq ft office), and Emory / CDC (40,500 jobs). The property features a mix of one-, two-, and three-bedroom units with large floorplans averaging 1,103 square feet. Apartment and community amenities include nine-foot ceilings, balconies, a state-of-the-art fitness center, and a large saltwater swimming pool.
“Parkside Vista is located in an outstanding, high barrier-to-entry suburban submarket whose growth has only accelerated since the onset of the pandemic,” said Doug Fraser, who manages the acquisition efforts for the firm. “The supply-demand fundamentals in the submarket remain stellar, with only one multifamily asset under construction within a 6.5-mile radius of the property, paired with one of the lowest submarket vacancy rates in the metro. This supply-demand imbalance has resulted in 12.7% submarket rent growth over the last 12 months, accelerating our original business plan,” says Fraser.
The property was over 96% occupied at the time of acquisition.
This acquisition marks the 5th investment from 37th Parallel’s inaugural fund. 37th Parallel Fund I, launched in November 2019, which seeks to acquire value-add and core-plus multifamily real estate in the Southeast and Texas. “The Parkside Vista acquisition shows our continued commitment to our Fund investors. Atlanta’s long-term fundamental strength paired with the submarket population growth and employment diversity should drive attractive risk-adjusted returns. Our thesis of investing in suburban multifamily assets in stable submarkets with employment diversity continues to prove resilient and profitable.” says Chad Doty, Managing Partner. The fund has made investments in Dallas, Austin, San Antonio, and Atlanta.
The acquisition, structured as a joint venture with Apta Properties, was funded with a blend of 37th Parallel Fund I, high net worth investor equity, and new investor capital from Apta Properties. “We are thrilled to partner with 37th Parallel on this compelling opportunity as we look to grow and provide our investors with attractive, risk-adjusted returns,” says Vasu Kakarlapudi, MD, Managing Partner of Apta Properties.
The asset will benefit from floating-rate agency debt financing, arranged by Cutt Ableson and Colin Marusak of Berkadia. The properties will be managed on-site by First Communities, based in Atlanta, who manage over 18,500 units in the metro area and over 57,000 units overall. 37th Parallel extends its appreciation to Shea Campbell of CBRE’s Southeast Multifamily Team, who represented the Seller in the transaction.
The property is undergoing a complete rebrand and has taken the name of Haven North East. Community-wide renovations will accompany the new brand.