Defoor Village Apartments

Atlanta, Georgia

Historical Transaction

Units: 156
Total Capital: $11.8 million
Equity Invested: $1.8 million
Status: Sold
Realized Multiple: 1.9x
Realized IRR: 43%

DeFoor Village Apartments is a 156-unit project situated on a 5-acre site that includes 149,449 net rentable square feet in four residential buildings and a leasing office/clubhouse building. Located in an in-fill site, just 5 miles north of downtown Atlanta, DeFoor Village is attractive due to its convenient access to major employment centers, retail facilities and entertainment venues. At the time of development, Atlanta was the leader in total job creation in the U.S. and overall occupancy for the MSA was 96% with the Atlanta City/Brookhaven submarket leading the way with 97% occupancy while achieving the highest rental rates in the market. The project was developed and stabilized with a 22 month time period and sold in December, 1997.

Opportunity

  • Joint-venture with a regional multi-family developer representing over 35 years of experience in multifamily development, construction, and management in the Southeast and which at the time had six development projects under construction totaling 1,930 units in Georgia and Florida– leverage the local expertise and market knowledge of the regional developer.
  • Market research projected a strong emerging submarket with increases in rental rates and occupancy complemented by limited direct competition during the development timeline.
  • Capitalize on opportunity for compressed lease-up timeline given the attractiveness of the project’s urban infill location and proximity to major employment centers, public transportation, retail facilities, restaurants, and entertainment venues.