Southlake Cove. Courtesy of R. James Properties.
Atlanta apartment investor Crown Bay Group LLC recently sold two area communities for $35.9 million.
The workforce-housing assets, Southlake Cove in Jonesboro and Vineyard Pointe in Riverdale, were sold to another local landlord, R. James Properties Inc., in a transaction that closed March 9.
Crown Bay purchased Southlake Cove, located at 7509 Jonesboro Rd., for $18.3 million in February 2019 and sold it for $27.3 million. It purchased Vineyard Pointe, located at 8213 GA-85, for $5.7 million during the same month and sold it for $8.5 million.
“When we purchased these properties in 2019, we were able to see the upside and potential value-add within these communities,” Crown Bay founder and principal Steve Firestone said in a press release. “Over the past two-plus years, we were strategic in the improvements made, both from a cosmetic and management standpoint. The fact that we were able to sell them for significant profit that well-exceeds our pro forma in less than three years, demonstrates the value of forced appreciation, not to mention the historical stability of this asset.”
The sales come amid a flurry of recent activity by Crown Bay, which has closed almost $115 million of Atlanta multifamily transactions since June 2021. Other recent sales include Pines of Southlake for $10.5 million and Cascade Oaks for $12.4 million, while recent acquisitions include Netherley Park for $31.6 million and Bullock Habersham Apartments and Dodson Courtyard Apartments for a combined $20.5 million.
Southlake Cove was built in 1987 and encompasses 346 mostly one-bedroom units in 45 buildings in a 34.5-acre complex. Community amenities include a fitness center, pool, playground and onsite laundry facilities.
Crown Bay purchased the property after the previous owner made $3 million in capital improvements, which Crown Bay continued. The community was 100% occupied when sold, up from 91% when Crown Bay bought it.
Vineyard Pointe, meanwhile, comprises 108 one- and two-bedroom apartments in 18 buildings in an 11-acre complex. Crown Bay said it made cosmetic upgrades to property, which was built in 1989, and deployed its management standards to improve the overall standard of living and bring rents to market rates.
“Properties such as Southlake Cove and Vineyard Pointe are popular among the workforce employee base — and now investors too,” Firestone said. “Minimal tenant turnover and delinquency typically make for a stable, steady cashflow. For this reason, this historically stable, recession-proof product will continue to be an attractive avenue for investors to diversify their portfolios, particularly during uncertain economic times.”
Vineyard Pointe. Courtesy of R. James Properties.