Elmington Residential and American South Capital Partners teamed up this week for their first joint purchase: The Asher at Sugarloaf in Lawrenceville, Georgia, according to a news release shared with Multifamily Dive.
Federal Capital Partners, which acquired the 260-unit property in 2021, sold it to Elmington and ASCP, ASCP Executive Vice President Tyler Epps told Multifamily Dive. Patterson Real Estate Advisory Group arranged the financing, per the release. The sales price was $55 million.
The Asher at Sugarloaf, built in 2008, offers affordable and workforce housing with one-, two- and three-bedroom units, per the release. “It was very, very well maintained,” Epps told Multifamily Dive. “Our PCA had under $2,000 of deferred maintenance noted.”
In 2023, Federal Capital Partners entered into a private enterprise agreement with the Gwinnett County Housing Authority for the property, according to Epps. Under that agreement, 20% of units were preserved at less than 60% of the area median income, 30% at less than 80% and the remaining 50% at less than 120%.
“It's a very strong tax abatement program,” Epps said.
Upgrades coming
ASCP contributed $18 million to the acquisition. In the release, Elmington Executive Vice President Jason Abel said the “investment significantly strengthens our ability to execute large-scale preservation strategies.”
Epps said most units in the 96%-occupied community are either in their original condition or have undergone partial renovations.
“We're going to do cosmetic upgrades that will include subway tile backsplashes and vinyl plank flooring,” Epps said. “There are some of the elevated countertops that we're going to trim down, so you can basically eat at the countertop. It's a very modest renovation program.”
Elmington, which has nearly 14,000 units across 70 properties in 10 Southeastern states, will manage the asset, according to Epps. “They’ve really specialized in the compliance side and managing both affordable and market-rate properties,” he said. “This will be kind of a perfect opportunity for them to step into a strong asset day one with their institutional affordable expertise.”
The community sits in Gwinnett County, which has six affordable projects currently in development, per the release. “It is in one of the fastest-growing corridors in Atlanta, up in Gwinnett County, off Sugarloaf Parkway,” Epps said. “It is an area that you know we had had our eyes on for years. We thought it was a really compelling corridor for workforce and affordable housing investments.”
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