In Sun Belt multifamily right now, it's a tale of two markets. At the lower end of the scale are assets built in the 1980s and 1990s that suffer from deferred maintenance and are caught in a liquidity crunch.
On the other end of the spectrum are newer class A properties in neighborhoods with limited supply and strong employment drivers. That’s where the investment dollars are focused right now, according to Julien Lipps, director of acquisitions for the Southeast region at TruAmerica Multifamily.
On Oct. 15, TruAmerica announced it acquired one of those properties in the second bucket: the 446-unit Bricks at Perimeter Center garden-style apartment community in Dunwoody, Georgia, which sits within Atlanta’s Perimeter Center submarket, according to a press release shared with Multifamily Dive.
The firm acquired the Gables Residential-built property from Atlanta-based Clark Ventures, according to Lipps.
“The majority of the capital that is investing in multifamily in this turbulent environment is really all congregating in the same type of asset profile, which is why you're seeing dozens and dozens of bids on assets like the Bricks,” Lipps told Multifamily Dive. “Then, on an older vintage deal in a B location, it's very hard to sell those deals right now all across the United States, regardless of location.”
TruAmerica used existing relationships to secure the deal. Earlier this year, the firm bought a property in Atlanta's Buckhead area, according to Lipps. Bricks owner Jordan Clark was part of that ownership group and was with Gables when the asset was built, according to Lipps.
While buying the Buckhead property, TruAmerica told Clark Ventures it was seeking other acquisitions for its discretionary fund. CBRE Vice Chairman Kevin Geiger facilitated the deal, which brings the firm to 3,374 units in Atlanta.
“We used our extensive relationship with Clark Ventures, and we were able to do something preemptively before the actual marketing process finished,” Lipps said. “We were able to take it off the shelves that way. Up until that point, they had 40 to 50 tours. So they were expecting maybe 25 to 30 bids.”
An upgrade opportunity
Bricks at Perimeter Center, built in 2007, features studio, one-, two- and three-bedroom apartments with an average-sized floor plan of approximately 926 square feet, per the release.
“It's very unique from a physical construction perspective,” Lipps said. “On top of that, it's an elevator product. You have penthouse units that have 15- to 20-foot ceilings, depending on the building.”
Bricks at Perimeter Center also has four courtyards — two of which contain lake-like water features, according to Lipps. “There's a ton of opportunity to elevate those amenities and create a living experience for residents that you can't get even at some new construction properties,” Lipps said.
TruAmerica plans to renovate 442 of the 446 units, according to the release. In individual apartments, the firm will install quartz countertops, stainless-steel appliances, new flooring and updated cabinetry and hardware.
The property's original leasing office is now an unused clubhouse, according to Lipps. TruAmerica plans to create a co-working space to compete with the class A product in that submarket.
“Atlanta has a huge work-from-home population where people actually want to utilize that opportunity to work from home,” Lipps said. “So we're actually going to blow that out and create offices where you can lease out conference rooms and resident lounge areas.”
TruAmerica said no new units are currently under construction in Dunwoody, and only 321 are slated for delivery in 2027 across the broader submarket, per the release. Additionally, the property provides access to major employment centers in the Perimeter Center central business district, Perimeter Mall, premier retail and dining, and to Interstate 285 and MARTA.
“It's a clean deal with A-plus demographics and great employer drivers,” Lipps said. “This type of property will stand the test of time because it is super high-quality construction from one of the largest developers in the U.S.”
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