ATLANTA, GA – Providence Real Estate, a multifamily owner-operator, announced the completion of the acquisition of the Sundance Creek apartments in McDonough, Georgia, located within the Atlanta metropolitan area. The Property was bought in a joint venture with a global insurance and investment company that has been in operation for over a century.

Sundance Creek is a 232-unit suburban garden-style townhome apartment community built in 2004. The property is comprised of 26 two-tale townhome buildings, 24 detached garages and 32 storage units located on 15.4 acres.

Sundance Creek offers residents quick access to the expanding warehouse and logistics employers in the corridor from McDonough to Locust Grove. Key distribution operations in the area such as Home Depot, Georgia-Pacific and Goya foods, as well as significant distribution campuses that are being plotted in the area, are anticipated to drive demand for renovated, workforce rental housing that Sundance Creek plans to offer to residents.

“As the Internet continues to disrupt the nature of retail sales, our workforce residents are increasingly employed in logistical-related industries rather than on retail sales floors. Correspondently, the preferred location for many renters is shifting away from centers of retail to centers of logistics. Providence’s acquisition of Sundance Creek is a direct result of its location near logistical employers, and our desire to better serve our workforce renter as their centers of employment evolve in an on-line economy,” said Alan Pollack, Providence’s Chairman.

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AUGUSTA, GA – 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 bought Grand Oaks at Crane Creek, a 300-unit, fully stabilized Class A apartment community in Augusta, Georgia. Passco bought the asset directly from the property’s developer, Southeastern Development Associates, for a total consideration of $58 million.  

The property, which was completed in 2016, is distinctly Class A, including luxury amenities and finishes such as granite countertops, stainless steel appliances, faux wood flooring, and a contemporary resident amenity package.

“This is a proven asset that has demonstrated impressive pent-up demand for luxury housing in the Augusta market,” says Colin Gillis, Vice President of Acquisitions East at Passco Companies.  “Driven by sound market fundamentals and an affluent resident base, the property is well-aligned with Passco’s continued investment strategy, through which we buy strong-performing assets in secondary markets with robust in-place growth drivers.”

The Augusta market is uniquely positioned for continued growth, according to Gillis, who points to the relocation of the U.S. Army Cyber Command – the country’s headquarters for cyberspace operations, development, and training – from Alexandria, Virginia to Fort Gordon in Augusta as a driving force behind local economic expansion.

“Driven by a cyber boom and tremendous capital investment into this new military hub, this market is slated to add 7,000+ new military and civilian jobs, with an annual economic impact of $150+ million,” says Gillis, who also notes that Augusta is projected to be the #1 growth market in the state of Georgia in 2019.

Grand Oaks at Crane Creek also benefits from its exceptional location, according to Gillis. The property is walkable to a newly developed 50,000 square-foot Class A retail center anchored by high-end organic grocer, Sprouts.  The asset is in close proximity to Interstates 20 and 520, and is a two-minute drive from the 750,000 square-foot Augusta Exchange shopping center – one of the largest retail centers in the region.

“By acquiring an asset in the center of this vibrant activity that is already equipped with modern amenities and a strong renter base, we are able to do on proven strategies to deliver additional value to residents while improving efficiency and increasing NOI,” says Gillis.
Passco plans to implement a series of eco-friendly upgrades to the property, including new LED lighting, low-flow toilets and showerheads, and Nest thermostats. The company will also add washers and dryers to each unit.

Grand Oaks at Crane Creek already offers a host of competitive community amenities, including a pet wash station and dog park; a 24/7 fitness center with high-tech cardio stations, a spin room, and a yoga studio; a resort style saltwater pool with a sundeck and a pool pavilion with outdoor kitchen and grilling areas; controlled access gates; shuffleboard; a cybercafe and Wi-Fi enabled amenity areas; as well as several courtyards with fireplaces. Grand Oaks at Crane Creek is located at 680 Crane Creek Drive in Augusta, Georgia. 

Mark Senn, President of Southeastern, the developer and seller of the luxury apartment community, clarifies: “We were not necessarily keen to sell this exceptional property. It took us several years to buy the 35-acre, best-in-market development site, located within walking distance to several restaurants and retail with fantastic interstate visibility.”

He also notes that of the approximately 1,000 units that Southeastern develops each year, this is the first in Augusta, where the firm is based.

John Lee, Jr., Senior Vice President of Southeastern adds: “We chose to sell this asset to Passco based on our long relationship with their team and their diligent and respectful pursuit to buy this community. Our Vice President Chris Senn and Colin Gillis at Passco were instrumental in spearheading this transaction. It has been a very smooth and professional process.” 

Coinciding with the acquisition of Grand Oaks, Passco has just sold The Glen at Alexander, a 216-unit multifamily community in Augusta that the firm bought in 2012. 

“During our seven-year hold period, the Passco team made tremendous value in this asset, making this a well-timed sale that will deliver strong disposition proceeds,” says Gillis. “We remain focused on our investments in this market, and look forward to achieving similar success with Grand Oaks.”

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OKLAHOMA CITY, OK – Denver Realty Group, through its DRGinvest platform, closed on the acquisition of Savannah Pointe Apartments in Oklahoma City for approximately $5.1 million. This marks the fifth apartment complex acquisition by DRGinvest and its affiliates in Oklahoma City since December 2018.

Built in 1976, with full updates in 1999 and additional interior and exterior enhancements over the last two years, Savannah Pointe Apartments has 138 total units with an extremely attractive mix of only two- and three-bedroom floorplans. Additional favorable investment features include an extremely low utility operating expense structure, fantastic location and current stabilization. The property does not require significant ongoing capital expenditures, and DRGinvest will continue to emphasize operational optimization and community upgrades on an as-needed basis. 

“This is a fantastic compliment to our existing Oklahoma City portfolio, now comprising over 600 units.” Said Zack Kobilca, Managing Partner of Denver Realty Group. “We are very excited about this acquisition as we bought the property at one of the lowest price per unit acquisitions in the market. The plot is to implement DRG’s management practices and seek above-market occupancy as quickly as possible. We expect our investors to be well served from the current income our investment portfolio generates, as well as the longer-term tailwinds in Oklahoma City. Not only does Savannah Pointe fit this criteria, but DRG continues to seek more opportunities in the market.”

DRGinvest was established in 2017 as the syndicated investment arm of Denver Realty Group, LLC. Focused primarily on value-add multifamily projects in attractive markets, DRGinvest has bought 745 units across seven funds, with approximately 1,500 total units under ownership.

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