Passco Companies, a privately held California-based commercial real estate company that specializes in acquisition, development, and property and asset management throughout the U.S., has acquired Avana Lenox, a 423-unit apartment community in Atlanta, Georgia. The acquisition brings Passco’s current Atlanta multifamily portfolio to more than 1,800 units.
The firm purchased the asset from Greystar, who will remain the property manager for the community, for a total consideration of $106.5 million.
While in line with Passco’s proven strategy of acquiring well-located multifamily properties in markets with strong growth fundamentals, Avana Lenox is a highly-unique addition to the firm’s Georgia portfolio, according to Colin Gillis, Vice President, Acquisitions – East.
“Avana Lenox is a once-in-a-generation acquisition due to its rare positioning as one of the last garden-style multifamily communities constructed in Buckhead,” explains Gillis. “In addition to the exceptional, low-density site and huge floorplans, our team was drawn to this property because of its irreplaceable location, which allows the property to enjoy ‘dual’ Buckhead and Midtown identities. The property offers both surface street and interstate access into the hearts of both Atlanta’s financial district in Buckhead, and the established Arts District and a burgeoning tech-hub of Midtown.
While situated within a quiet community near million-dollar homes, Avana Lenox has significant visibility along main thoroughfares and is in close proximity to jobs and other conveniences.
“This is one of the best-located properties in Atlanta in terms of proximity to major employment centers,” continues Gillis. “Residents have near-immediate access to Interstate 85 and Georgia State Route 400, reaching nearly 500,000 jobs within a 10-15-minute drive, including those in Buckhead, Midtown, Brookhaven Medical Corridor, and Clifton Corridor.”
According to Gillis, while Passco has been highly active in the Atlanta suburbs for the past several years, this was a significant and unexpected opportunity to acquire a multifamily community that fit the firm’s investment profile in a core, inside-the-perimeter-location.
Paul Berry of CBRE’s Investment Properties Mulitfamily represented Greystar as the seller in this transaction. In describing Avana Lenox, Berry noted, “the property provides an umatched combination of commuting convenience, large apartment sizes, state-of-the-art amenities and an elegant mid-density setting. For a host of reasons, Avana Lenox can not be replicated, and that fact combined with its set of features should lead to future rental performance much stronger than market norms. Avana Lenox is an outstanding longterm hold property.”
Built in 1998, Avana Lenox is situated on 15 acres and features some the largest floorplans in the market with an average of 1,203 square feet, over 40 percent larger than new development averages, Gillis notes.
The majority of Avana’s units have been renovated in recent years to varying degrees, and the amenity offerings upgraded to Class AA quality, including full renovation of the leasing center, ﬁtness center, club rooms, and pool area; an exterior makeover; and refreshed signage.
“Passco plans to follow the lead of previous ownership and their proven-out renovation strategy to modernize select units with updated flooring and fixtures, creating additional value and strong cashflow without significant capital investment,” notes Gillis.
Community features include a two-story fitness studio, a resort-style pool with lounge seating and a fire pit; a game room with billiards, shuffle board, and a flatscreen TV; a conference room; a package locker system; tennis courts; and several other amenities.
The apartment community offers units with a range of one-, two-, and three-bedroom floorplans, with 82 units of two-story loft floor plans and 16 townhomes with attached garages.
Unit features include granite or quartz countertops, stainless steel appliances, plank ﬂooring, walk-in closets, reﬁnished white cabinetry, and full size washer and dryers provided in renovated units.
The property is located at 925 Canterbury Road in Atlanta.