TerraCap Management Sells Multifamily Property in Northern Atlanta Suburb for $39M
Wednesday, September 9th, 2020
TerraCap Management LLC, a privately held investment firm based out of Estero, Florida, announced today the sale of The Crossings at Holcomb Bridge Apartments. TerraCap acquired the 268-unit apartment complex for $27.3 million in September 2017 as part of a four-property, 1,100-unit multifamily portfolio purchase totaling $116,000,000. Since acquisition, TerraCap's combined strategy of property upgrades, organic rent growth, and unit renovations caused a significant increase in rental rates at the 1984 vintage property.
Robert Witt, TerraCap Asset Manager, said "When we bought the Holcomb property, we saw the opportunity to capitalize on a well-located asset with strong demographics, access to public transit, and in-place rents that were well below the competitive properties. We executed a capital plan to update the exteriors, renovate unit interiors, and improve the quality of onsite management. The physical and operational improvements generated a 33% increase in the monthly rents from $787 to $1,046 over three years. The buyer will take over a property where they can expand on the strong growth fundamentals that are currently in place."
The property is located in the northern Atlantasuburb of Roswell. The North Fulton submarket is one of the most desirable housing submarkets in Atlanta and rent growth has outpaced the metro average in recent years. TerraCap hired First Communities Management as the property manager because of their deep experience in executing value-add multifamily strategies across the Atlanta Market.
"We are pleased to see the North Atlanta Holcomb Apartments business plan reach an outcome that exceeded our expectations," said Steve Hagenbuckle, Founding Partner and Managing Director for TerraCap. "Our conviction towards investing in high demand, financially healthy markets that see outsized employment growth and in-migration continues, and remains a safe choice for us and our investors. The TerraCap asset management team and our local business partners need to be commended for their outstanding execution of this investment."
David Gutting of NGKF in Atlanta represented TerraCap on the sale. First Communities Management led by Mitch Harrison, Jon Nixon, and Ed Romano represented TerraCap on the property management.
