NY investor acquires $45M workforce housing asset
Spaxel announced today that it has acquired a 266-unit workforce housing asset situated in the Atlanta metropolitan area, with Avison Young arranging a joint equity partner for the firm.
Spaxel, a vertically integrated development and investment firm based in New York, purchased the Hills at East Cobb in Marietta, GA in a $45 million transaction. The multifamily residential complex is located at 1716 Terrell Mill Road, 1.5 miles from the new Atlanta Braves stadium.
Spaxel is led by managing partner Granit Gjonbalaj, previously chief development officer at WeWork, and partners Ben Siscovick and Jeff Dybas.
“Hills at East Cobb is a tentpole transaction for Spaxel in the Southeast, representing what will be the first of many transactions in the region,” Gjonbalaj said. “The asset has some of the largest floorplans in the market and is in a prime location benefiting from incredibly strong migration and macroeconomic trends. When combined with our extensive capital improvement plan, we expect to offer one of the most compelling multifamily products in the North Atlanta submarkets.”
Avison Young’s Capital Markets team arranged $16.4 million in limited partner (LP) equity from Sound Mark Partners, a Greenwich, CT based commercial real estate investment firm focused on making investments throughout the capital structure. The Avison Young team was led by John Kevill, principal and president of Avison Young U.S. Capital Markets; Wes Boatwright and Dean Sands, principals based in Washington; and Casey Keitchen, a principal based in Atlanta.
“Hills at East Cobb is a fantastic acquisition in one of Atlanta’s most sought-after submarkets,” Kevill said. “Inbound population is leading to some of the highest rent growth in the country. The property itself is well suited to Spaxel’s proven approach of positioning properties to capitalize on the local dynamics and drive above-market returns for their investors.”
The acquisition of the complex near Atlanta is part of Spaxel’s strategy to pursue value-add and new construction multifamily opportunities targeting affordable and moderate-income housing. Spaxel has been focused on the Atlanta area as a prime market to extend this strategy.
The Hills at East Cobb is a residential community with one-, two- and three-bedroom apartments. The complex features a swimming pool, dog park, fitness center, picnic area and clubhouse. It’s close to a number of shopping and dining options and offers easy access to I-285 as well as Truist Park, the home of the Atlanta Braves.