Baltimore-based real estate investment company plans $3.5 million of property enhancements for 14-building asset containing 325 apartment homes that is 97% occupied
Continental Realty Corporation (CRC), a Baltimore-based real estate investment and management company, has announced the acquisition of Two Addison Place, a 325-unit multifamily community located at 2 Addison Place in Pooler, Georgia near Savannah. The garden-style community, which consists of a mix of 14 two, three and four-story buildings as well as cottage homes with attached garages, was 97% occupied at the time of the off-market sales transaction.
The asset was purchased on behalf of Continental Realty Fund V, L.P., a $210.8 million private equity fund focused on acquiring value-add retail and multifamily properties in the Mid-Atlantic and Southeast regions. This represents the third multifamily community and ninth overall asset acquired by the fund, following last year’s acquisition of Mount Pleasant Towne Centre, a 510,000 square foot open-air regional shopping venue situated in South Carolina.
With this acquisition, CRC now owns three assets in Georgia, including Millworks Apartments, a325-unit apartment community located in the Buckhead section of downtown Atlanta, and North Bridges, a 105,000 square foot retail center in Alpharetta. Additional nearby in South Carolina, CRC assets are Central Island Square, a mixed-use project containing 313 multifamily units and complementary retail space in the 4,000-acre master-planned community of Daniel Island, and The Bluestone, a 360-unit multifamily community in Bluffton near Hilton Head Island.
“Two Addison Place represents an excellent addition to our portfolio based on its stature near the top of the multifamily asset class in the Pooler submarket, combined with the limited amount of new multifamily development under construction or planned for the immediate future,” explained JM Schapiro, CEO of Continental Realty Corporation. “The property is positioned to experience growth with CRC internal management overseeing operations and the execution of our value-add business plan to fully refresh all common area amenities and upgrade the unit interiors. This adds to the critical mass of properties we are assembling in the region based on our relationships and market knowledge which will increase operational efficiencies.”
“The Fund was able to acquire Two Addison Place at an attractive sales price, as the per unit basis was well below recent and comparable multifamily community trades in the marketplace,” stated Ari Abramson, Vice President of Acquisitions for Continental Realty. “Market rents have significantly shifted in the submarket, which will allow CRC to reset rents and appreciate incremental yield through a comprehensive repositioning program following the completion of community-wide enhancements. The newly-delivered product has been steadily absorbed due to the area’s population growth and employment opportunities in the retail, hospitality, high-skilled manufacturing, port logistics and healthcare fields.
“The immediate area’s attractive rent-to-income and the rent-to-own ratios indicate that the in-place rent roll has ample capacity to appreciate higher rents while remaining below the cost of home ownership. Effective rents have experienced position momentum and the lack of new product should translate to uninterrupted growth,” Abramson concluded.
Community features largest average square footage unit in submarket
Delivered in 2014, Two Addison Place offers one, two and three-bedroom floorplans ranging from 723 to 1,737 square feet of space, and its 1,122 square feet average unit size represents the largest in the Pooler submarket. Thirty-seven unique custom floor plans are available, with open space units featuring nine to 14-foot ceiling heights, granite kitchen and bathroom countertops, ceiling fans throughout, wood-style and stained concrete flooring, washers and dryers, walk-in closets, Roman soaking tubs and balconies or porches.
The bespoke architectural design with terracotta-style roofs is a tribute to Addison Mizner, the designer of The Cloister Hotel in Sea Island and Boca Raton Resort and Club.
Community amenities are highlighted by an expansive clubhouse with conference center cybercafé, state-of-the-art fitness center, yoga room and outdoor resort-style saltwater swimming pool with private cabanas. Also included are two outdoor courtyards accented with fireplaces and grilling areas, a dog park and dog wash area, and a car care center where residents can wash and service their vehicles.
CRC plans $3.5 million upgrade strategy focused on interior units and amenities
In the initial years of its ownership, Continental Realty Corporation intends to complete $3.5 million of interior unit and amenity upgrades with the objective to fully refresh Two Addison Place and reintroduce the property to the marketplace. CRC will invest in each apartment home to install new stainless-steel appliances and ranges, upgrade the lighting system, add a smart home technology package, replace kitchen backsplashes and cabinets.
CRC also plans to completely remodel the leasing office, business center, game room and fitness center in the clubhouse, improve the landscaping throughout the community, add an outdoor firepit gathering area, enhance the dog park and add a modern package locker system that can be accessed by residents after-hours.
Surrounding demographics and proximity to major employment centers
Fueled by employment opportunities at the Port of Savannah, Pooler has experienced a 21% population growth over the past six years and the population is projected to increase by an additional 15% by the end of this year. This represents a 98% population growth within one mile of Two Addison Place and a 30% growth within three miles over the past 10 years. Nearly 40,000 jobs are contained within a five-mile radius of the community.
The Port of Savannah announced plans to construct a 200-acre port terminal by 2025, and nearly six million square feet of new industrial space is planned between the Megasite, Savannah Gateway and Port Logistics Center.
More than 13.5 million people visit Savannah annually, contributing to a tourism industry with a $2.5 billion economic impact that supports more than 24,000 tourism-related jobs.
Two Addison Place is located off Interstate 16 and adjacent to the Pooler/Port Wentworth industrial corridor, near major local employers including Amazon, Fort Stewart, George Ports Authority, Gulfstream, Memorial Health, Savannah College of Art & Design, St. Joseph/Candler Hospital and Wayfair. The community has direct access to Pooler Parkway and the Jimmy Deloach Parkway extension from Highway 80, with connectivity to the Port of Savannah. Savannah International Airport is approximately six miles away.
Continental Realty Corporation (CRC) is focused on acquiring value-add retail and multifamily properties located throughout the Mid-Atlantic and Southeast regions of the United States. Headquartered in Baltimore and founded in 1960, CRC is a full-service commercial real estate and investment company. The privately-owned firm owns and manages a diversified portfolio of retail centers consisting of more than five million square feet of commercial space, as well as nearly 9,000 apartment homes. Positioned throughout the Mid-Atlantic and Southeast regions, the portfolio’s value exceeds $2 billion. For additional information, visit www.crcrealty.com.
