Atlanta Investor Buys Apartments in a Fast-Emerging Neighborhood
A local investor focused on buying and renovating older apartments has jumped at the chance to snag a 54-year-old property in one of Atlanta’s emerging neighborhoods.
Castlegate Property Group paid $19.4 million for the 172-unit Moores Mill Village on Atlanta’s Upper Westside. That works out to $113,000 per unit, roughly half the average price per unit in that area and just below the average for older properties.
The seller, MSC Investment & Management of Mableton bought the property three years ago for $10.4 million.
West midtown in general has seen a lot of new construction. According to CoStar data, more than 2,100 units are underway.
“The Upper Westside has emerged as a burgeoning live, work, play destination as developers target the former industrial corridor with new residential units, retail, and creative office space,” said Trenton Turner, CoStar’s Atlanta market analyst.
Rent growth for new properties has risen just 2% over the past year. But older properties have seen rents increase nearly 8%.
That’s what attracted Castlegate to the property. “Our clients jumped at the opportunity to acquire this property before it ever hit the open market,” said Barden Brown, senior managing director with Greystone Brown Real Estate Advisors.
Moores Mill Village is Castlegate’s fourth property in the Atlanta area. The investor bills itself as focused on buying properties that can be improved to generate higher rents.
For the Record
In addition to Brown, Chandler Brown, Taylor Brown and Cory Caroline Sams, all with Greystone, represented Castlegate in the deal.
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