Park and 12th, a Class AA apartment asset located in the heart of Midtown Atlanta and bordering Piedmont Park, was 100% vacant and held in foreclosure by SunTrust Banks, Inc. The infill asset was located in the heart of a thriving “work/live/play” cosmopolitan neighborhood bordering Piedmont Park – a 190 acre, highly-active, world-class park that serves as the premier green space in Atlanta. Park and 12th was acquired in February 2012.
Our Partners: SunTrust & Protective Life
Our Performance
Park and 12th was acquired for a total capitalization of $6.025 MM; which also provided funding to complete construction on the 30 residential units and two large retail spaces.
The target demographic was the “Echo Boomers” for the one bedroom and smaller two bedroom units and established professionals for the larger two bedroom units. High-desire in-unit features and highly- functional common areas were created to cater to the target lifestyles.
Intentional recruiting of the retail tenants, including an on-site fitness center and physical therapist, provided the opportunity to include unique services for residents such as personal trainer sessions and spa treatments as part of their lease agreement. The units were finished with high-end finishes.
The choice-located asset was leased to 100% occupancy within the first 5 months with an effective rent target of $1.97/sf. Renewals and leases were increased between 7% – 14% to reach the stabilized target range of $2.20 and $2.43/sf and position the asset for resale.
The Bottom Line
In June, 2013 – 15 months after its acquisition – Park and 12th was sold for $9.45 million. The sale yielded an approximate deal-level IRR of 89% and an approximate multiple of 2.48.
Copyright 2013. St Clair Holdings
All Rights Reserved
St. Clair Holdings, LLC Terms and Conditions
Effective: January 1, 2014
You acknowledge that the Case Studies you are about to view are provided for informational
purposes only and do not constitute investment, accounting, tax, legal or other advice or an offer to
sell or a solicitation of an offer to buy any security, other investment (including, without limitation, real
estate) or investment service. Although the Case Studies may include material about real estate
investments, such material and reports are not, nor should not construe them to be, an offer or
solicitation of any kind whatsoever.
These Case Studies represent actual investments made by St. Clair Holdings, LLC. The Case
Studies are presented for informational purposes only to illustrate the successes of St. Clair
Holdings, LLC with past real estate investments. The Case Studies are a summary only and
do not purport to be complete. Performance information (including IRR) is approximate and
unaudited. The Case Studies should not be construed as indicative of future St. Clair Holdings, LLC
investments or the profitability of such investments.
You also agree not to sell or modify the content or reproduce, display, publicly perform, distribute, or
otherwise use the content in any way for any public or commercial purpose in any other manner that
is likely to cause confusion among consumers, that disparages or discredits, that dilutes the strength
of our property, or that otherwise infringes on our intellectual property rights.