Fairfield Residential has acquired Trees of Avalon, a community in McDonough, Ga., from Watkins Real Estate Group for $58.6 million.
Cushman & Wakefield’s Southeast multifamily advisory group represented the seller in the transaction. Upon completion of the sale, Fairfield Residential renamed the property Colton Creek Apartments.
“Trees of Avalon is located in the Southside Atlanta market, which is currently offering buyers the opportunity to enter Atlanta at a more attractive cap rate than those in the Northern suburbs,” Alex Brown, a director at Cushman & Wakefield told MHN. “This property had been a long-term hold for the seller. Timing to sell was optimal as pricing peaked and cap rates compressed to low levels. The price per unit was attractive while below replacement cost, which helped push pricing.”
Units and Amenities
Located at 2014 Avalon Parkway, the property consists of 500 units, made up of one-, two- and three-bedroom apartments.
The eight-year old development is fully amenitized, offering controlled access gates, a clubhouse/leasing center, fitness center, swimming pool with hot tub, two lighted tennis courts, grilling/picnic area, playground, laundry facility, two car care centers and 112 garages.
“The previous owner had implemented upgrades on a few units, including adding stainless steel appliances, granite countertops, new cabinets, and flooring, which earned up to $150 premiums,” Brown said. “The new owner plans to continue these interior upgrades, while also likely improving the amenities.”
About the area
Cushman & Wakefield research reveals that McDonough offers one of the most underrated growth stories in metro Atlanta, with high population growth, a thriving industrial market and a minimal development pipeline. According to Brown, the development is surrounded by destination retail, distribution employment, and single family residences, making it an attractive property.
“As I-75 is known widely as a true retail/big box/outlet destination for travelers and residents, new retail and multifamily development continues to expand the corridor and diversify its offering,” he said. “With its strategic ‘Savannah Port Side’ location, McDonough’s substantial industrial market has over 4.1 million square feet under construction and contributes to more than 160,000 distribution jobs in Atlanta’s Southern Crescent.”
He added that interest in the property was extremely high from both private and institutional investors.
“The Cushman & Wakefield team conducted over 20 tours with nearly as many offers submitted,” Brown said.
Cushman & Wakefield’s Southeast Multifamily Advisory Group has finished $2.7 billion in sales volume this year, representing more than 175 deals and 35,000 units.