Cannell Capital Partners (CCP), a multifamily acquisitions and asset management company, has closed on three Atlanta properties in 13 months, including the 174-unit Tall Oaks Apartments in Conyers, Ga., last month. In August 2016, CCP closed on the 100-unit Brighton Way, and in June of this year, the firm purchased Regal Pointe Apartments, a 121-unit property.
The deals, each completed separately, were the first in which the Mebane, N.C.–based company was the general partner and owner. Prior to that, CCP worked with other sponsors and did its own investing.
In an off-market transaction facilitated by Berkadia investment sales, CCP closed on Tall Oaks, which was built in 1984 and is in the Rockdale County area of East Atlanta. “Rockdale County is experiencing robust job growth from a variety of industries, including transportation, logistics, and film, as well as vibrant retail options,” says Peter Cannell, founder of CCP. “A growing employment base and a vibrant local economy are key drivers fueling demand for multifamily housing.”
Cutt Ableson, senior managing director for Berkadia’s Houston office, has provided Freddie Mac financing for CCP’s multifamily acquisitions. “CCP has proven to be a significant value-add player in the Atlanta MSA, and the GSEs have taken notice,” Ableson says. “CCP has continually exceeded pro forma expectations, and their robust portfolio performance was able to secure nonrecourse financing through Berkadia’s Freddie Mac Seller-Servicer Program. The 4.15% fixed rate includes multiple years of interest-only, which enables CCP to carry out their extensive renovation plan.”
CCP plans to deploy new capital for interior renovations at Tall Oaks, including kitchen appliances and countertops, flooring, and lighting updates. Water efficiency will be implemented propertywide, as well, to reduce utility expenses and protect the environment.
The property’s exterior-renovations budget provides for roof replacements, landscaping updates, a multi-use sports court, and new signage. A renovation of the leasing center will commence immediately to include new flooring and furniture and a cyber café for residents. Also planned is commercial-grade Wi-Fi for common areas.
On-site property management at Tall Oaks will be handled by Atlanta-based First Communities (FCM).
