Case Studies: Park & 12th

Park & 12th, Atlanta, Georgia


The Opportunity

  • 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.