17 Apr

Blue Magma Residential affiliate buys 918-unit apartment portfolio near Atlanta airport for $44.4M – Atlanta Business Chronicle

An affiliate of a Tampa real estate investment and management company has purchased a 918-unit apartment portfolio within three miles of the Atlanta airport and College Park for $44.4 million.

The buyer, an affiliate of Tampa-based Blue Magma Residential, has invested more than $100 million in the Atlanta market since 2015, and $60 million since December 2017. Its Atlanta area portfolio now totals nearly 2,500 units over seven communities.

Blue Magma Managing Partner Reuven Oded said the company recently purchased three value-add communities:

384-unit Lakeview Trails, a market rate property at 5724 Riverdale Road in College Park, bought for $18.2 million; 324-unit Preserve at Bent Creek, a tax credit property at 1994 Bent Creek Way in Atlanta, purchased for $17.8 million;210-unit Epic Brookside, a tax credit property at 5720 Riverdale Road in College Park, purchased for $8.4 million.

Epic Brookside is located less than one mile south of Hartsfield-Jackson Atlanta International Airport, a spokesman said. Lakeview Trails is located two miles south of Hartsfield-Jackson. Preserve at Bent Creek is located three miles northwest of the airport.

The Preserve at Bent Creek and Epic Brookside deals closed on March 28, while the Lakeview Trails deal closed March 6.

The portfolio sale price represents a price per unit of $48,365.

Hammond Residential Group sold the Preserve at Bent Creek and Lakeview Trails.

According to property records, VCP Bent Creek GO LLC, et al., 2210 Powers Ferry Road in Atlanta, sold 1993 Bent Creek Way to Blueros Bent Creek Property Holdings LP for $17.8 million on March 28. VCP Bent Creek GO LLC’s address on the deed is the same as Hammond Residential Group. VCP Bent Creek GO LLC is registered with the Georgia secretary of state’s office as a real estate company involved in leasing residential buildings and dwellings at 1994 Bent Creek Way SW in Atlanta. Blueros Bent Creek Property Holdings LP is registered at the same Tampa address as Blue Magma Residential.

On March 6, VCP Lakeview Trails sold 5274 Riverdale Road in Clayton County to VCP Lakeview SO LLC and Varden Capital Properties LLC for $18.2 million, according to property records. VCP Lakeview Trails LLC is registered as a lessor of residential buildings and dwellings at 2110 Powers Ferry Road, Suite 150, Atlanta, 30339, with the secretary of state’s office. Hammond Residential Group’s address is 2110 Powers Ferry Road, Suite 150, Atlanta, 30339.

Also on March 6, a quit claim deed for 5274 Riverdale Road was entered from seller VCP Lakeview Trails LLC, VCP Lakeview SO LLC, Varden Capital Properties LLC to buyer Blueros Lakeview Trails Property Holdings LP, 5650 Breckenridge Park Drive Suite 302-A Tampa, Fla., 32610. Blue Magma Residential’s address in Tampa is 5650 Breckenridge Park Drive Ste 302.

The latest portfolio buy represents Blue Magma’s fifth, sixth and seventh Atlanta-area communities acquired since 2015, Oded said.

The communities will undergo more than $6 million in exterior and interior upgrades, Oded said. Epic Brookside will be re-branded and marketed as The Park at Leeds, and Lakeview Trails will be marketed as The Park at Palatine. The Preserve at Bent Creek will become The Park at Castleton.

“Blue Magma Residential is continuing in its deliberate strategy of acquiring value-add properties in the Southeast U.S. where employment, household, demographic growth and corporate relocations are all solid and trending upwards,” Oded said.

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Reuven Oded, managing partner, Blue Magma Residential

Blue Magma Residential now co-owns or manages, through its affiliates, more than 10,000 apartment units in Georgia, Alabama, Florida and Mississippi.

The portfolio was purchased by an affiliate of Blue Magma Residential together with Montreal-based Rosdev Group, Blue Magma’s capital partner in the communities. Financing was provided by Arbor Realty Trust, and the transaction was brokered by Cushman & Wakefield.

“As evidenced in this transaction, Blue Magma Residential is also expanding our strategic move into the Lower Income Housing Tax Credit (LIHTC) segment of the market,” Oded said. “With our acquisitions of Epic Brookside and Preserve at Bent Creek, plus our December 2017 purchase of Orchard Cove in Covington, Ga., we feel there is a growing opportunity, and frankly a void, in this under-serviced and under-appreciated segment.”

In addition to the recent portfolio purchase and Orchard Cove in Covington, Blue Magma owns apartment communities in Lithonia, Union City and Stone Mountain.

The buyer, an affiliate of Blue Magma Residential, has invested more than $100 million in the Atlanta market since 2015.

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