A Chicago-based real estate investment firm has purchased two Sandy Springs apartment communities for a total of $81.4 million.
The firm, 29th Street Capital, purchased ReNew Sandy Springs apartments on Friday and Spalding Bridge apartments on June 30, according to Siobhan Doheny, director of Marketing and Communications. Together, the two apartment communities have 411 apartments. Both are located in the north end of Sandy Springs.
Doheny said 29th Street Capital couldn’t legally disclose the sellers’ names or sale prices. But according to Yield Pro magazine, a publication on multi-family housing, RADCO Companies was the owner of Spalding Bridge and sold the complex for $38.5 million.
29th Street Capital has invested in 13 older metro Atlanta communities since 2011, Doheny said.
Javier Bustillo, senior vice president of acquisitions for the Southeast region, said older communities provide more space and advantages than newer multi-family housing.
“The re-zoning difficulties that accompany new developments make garden-style communities with large floor plans like these irreplaceable,” he said in a statement.
Many communities acquired by the company, including the two recently acquired, are considered “class B” apartments, meaning the properties are slightly older. They will be remodeled with new flooring, updated lighting, stainless steel appliances, in-unit washers and dryers and more, Doheny said.
ReNew Sandy Springs is set to be rebranded. The community will be renamed Aqua Sandy Springs and managed by Haven Residential, according to 29th Street Capital. The current property managers, Trinity Property Consultants, was criticized by tenants last year for mold inside the units that had not been treated.
“Mold is the first thing we will address in terms of renovations,” Doheny said, adding that the firm was aware of the issue.
In 2020, the real estate investment firm acquired the Lake House at Martins Landing apartments in Roswell; Cumberland Crossing apartments in Marietta; and Knollwood Park in Gwinnett County, which was renamed The Square at Lawrenceville.
Doheny said 29th Street Capital usually sells its refurbished apartment communities within five to seven years and they typically bring a nearly 20% return on investment.