At a glance
- The property is a 280-unit rental community in Atlanta.
- At 3201 Downwood Cir., the building went up in 2015.
- RangeWater is effectively buying a yield on a nine-year-old building with an established rent roll.
RangeWater Residential paid $54.9 million for Bell Buckhead West, according to Connect CRE. The property is a 280-unit rental community in Atlanta. That comes to about $196,000 a unit. Bell Partners, the seller, bought the building for $62 million in 2017. RangeWater has renamed it Blaine Buckhead West.
At 3201 Downwood Cir., the building went up in 2015. A studio runs 676 square feet. A two-bedroom reaches 1,189. Rents run from $1,399 to $2,345 a month. Amenities include a fitness center, a pool, a 24-hour Java Bar and Lounge, a bocce court, and a Sky Lounge rooftop deck. The sale follows Sun Life Financial's March announcement that it would buy Bell Partners for $350 million, a deal that would put the seller under Sun Life's multifamily operating platform, according to Connect CRE and this publication's records.
The sale price is about 11% below what Bell Partners paid in 2017. That gap is a marker of the current multifamily market: a stabilized, fully leased asset still sells, but the price reflects the income it already produces, not future rent growth. RangeWater is effectively buying a yield on a nine-year-old building with an established rent roll. The risk is that a $1,399 studio is already at the top of the Buckhead market. If rents stagnate, the return will come from managing occupancy and costs, not from appreciation.
Reported by the Deals desk from Connect CRE and PRED records. Published . Corrections