Pacific Urban Investors, a leading multifamily owner-operator and investment manager, has made its mark in the Atlanta market with the acquisition of its first property in the Metropolitan Statistical Area (MSA). The property, now known as The Kinsley at Perimeter Center, is a 412-unit community located in the thriving hub of Perimeter Center in northern Atlanta.
This strategic move into the Atlanta market is part of Pacific Urban Investors’ broader expansion efforts along the East Coast, encompassing communities in the New York Metro, Boston, and Mid-Atlantic markets. With a total consideration of $102.5 million, the acquisition represents the company’s commitment to diversifying and growing its portfolio.
Matt Lederer, Vice President of Investments at Pacific, expressed excitement about bringing institutional capital relationships and a proven track record in the multifamily space to the Atlanta MSA. The company sees this as just the beginning of a series of investments in Atlanta, a market that they consider to be significantly underweight. Pacific is poised for a productive 2024 as it aims for both value-add repositioning and long-term core ownership in the area.
The Kinsley at Perimeter Center is strategically located in Perimeter Center, which boasts a vast array of employment and lifestyle amenities. The property is situated just one mile from the 1.5 million square foot Perimeter Mall and a short five-minute drive from Atlanta’s largest concentration of hospitals. Its prime location along Mount Vernon Highway ensures excellent visibility and accessibility.
Built in 1997, The Kinsley offers residents spacious floor plans averaging 1,101 square feet and a comprehensive set of amenities. With its competitive differentiator of 17 units per acre, the community stands out from the higher-density options in the area. Pacific is confident that this investment aligns with its investment thesis of providing quality communities in core locations near significant employment and lifestyle amenities.
Pacific Urban Investors would also like to acknowledge New York Life Investments for facilitating a smooth transaction, with the help of their long-standing relationship with broker Walker Dunlop.
With over $8.5 billion in assets under management, Pacific Urban Investors has established itself as a best-in-class owner, operator, and asset manager in the multifamily space. Committed to serving as a fiduciary for its own partner capital and institutional pension funds, Pacific continues to acquire multifamily assets as a principal and provide co-investment and preferred equity solutions.
For more information about Pacific Urban Investors and its portfolio, please visit www.pacificurbaninvestors.com.
In addition to the information provided in the article, there are several key facts, current market trends, and challenges associated with Pacific Urban Investors’ expansion into the Atlanta market.
1. Current Market Trends:
– Atlanta’s real estate market has been experiencing steady growth in recent years, making it an attractive investment destination for multifamily property owners and investors.
– The city’s population has been steadily increasing, driving up demand for housing, including rental properties.
– The Perimeter Center area, where The Kinsley is located, has emerged as a thriving business and commercial hub, attracting a significant number of businesses and professionals.
2. Forecasts:
– The multifamily market in Atlanta is expected to continue growing due to ongoing population growth and a strong job market.
– The demand for high-quality rental properties in desirable locations, such as Perimeter Center, is expected to remain strong.
– As Pacific Urban Investors expands its portfolio in Atlanta, it can benefit from the potential for increased rental income and property appreciation in the long term.
3. Key Challenges and Controversies:
– Competition in the multifamily market in Atlanta is fierce, with many developers and investors vying for prime properties.
– Rising construction costs and labor shortages may pose challenges to renovations or value-add repositioning plans for existing properties.
– Local regulations and zoning restrictions can impact the development and management of multifamily properties.
Advantages of Pacific Urban Investors’ expansion into the Atlanta market include:
– Diversification of its portfolio in a market with strong growth potential and attractive investment opportunities.
– The strategic location of The Kinsley at Perimeter Center, which offers residents convenient access to employment centers and lifestyle amenities.
– The company’s strong financial position, with over $8.5 billion in assets under management, positions it well to acquire and manage multifamily assets successfully.
Disadvantages to consider:
– The competitive nature of the Atlanta market may result in higher acquisition prices and potential challenges in finding suitable investment opportunities.
– Economic downturns or changes in market conditions can impact the rental demand and property values, affecting the profitability of the investments.
– The need to navigate local regulations and comply with zoning requirements adds complexity to the acquisition and management process.
For more information about Pacific Urban Investors and its portfolio, please visit www.pacificurbaninvestors.com.