Case Study

2800 at Sweetwater (Newly Acquired)

Lawrenceville, GA | Acquired 2016 | 1997 Vintage | 324 Units

Current Debt Terms

Three-year floating rate debt at 250 basis points over 1-Month LIBOR with full term interest only payments. Debt represents 71% of the capital stack.

Compelling Story

The seller’s debt was entering the three-year tail-end of a Land Use Restrictive Agreement (“LURA”), as the LURA’s 15-year restricted term concluded in 2014.

Value-Added

$3.7 million capital improvements plan emphasizing unit upgrades, exterior and common area amenities improvements, and deferred maintenance needs.

Mark-to-Market Opportunity

Despite two-thirds of units being “market rate” and offering a comparable product, in-place rents averaged $230 below its immediate competitive set and remaining units under restriction averaged $100 below the maximum rent allowed with Georgia Housing and Finance Authority regulations.