IMG, a private California-based real estate investment firm, has announced the acquisition of The Eclipse, a 175-unit apartment community in Duluth, Georgia (Atlanta MSA).
The Eclipse marks IMG’s 8th acquisition in Atlanta MSA in this cycle totaling over 2,300 units. Built in 1985, The Eclipse is located in Atlanta’s northeast premier expansion market of Gwinnett County, Georgia, one of the fastest growing counties in the U.S. This Southeastern U.S. submarket has the critical benchmarks that IMG targets: forecasted population growth, job creation, investments in infrastructure and technology, and affordability.
IMG plans to implement a $1.4M capital improvements program within the first 18-24 months of ownership. Projects include interior unit upgrades and enhancements to the community’s amenities.
- Acquired: October 25, 2018
- Purchase Price: $22,220,000
- Average Unit Size: 852 SF
- Unit Mix: 1/1s & 2/2s
- Anticipated Hold Period: 5 years
- Targeted Avg. Cash-on-Cash: 7.7%
- Targeted IRR: 14.7%
- Targeted Equity Multiple: 1.87%
ECONOMIC CAPITAL OF THE SOUTHEAST
Where should real estate investors be putting their money? Atlanta, according to Forbes. It ranked among the top U.S metros in 2018 in these key metrics: one-year job growth, three-year population growth (2014-17), one-year home price growth and affordability.
Atlanta was recently ranked the #1 moving destination in the country for the eighth consecutive year (Penske) and #1 Most Affordable Big City (WalletHub, April 2018). It is poised as a top-pick finalist city for the upcoming Amazon HQ2 decision, which could bring $5B construction/50,000 new jobs to Atlanta.
From the Atlanta Journal-Constitution: Atlanta Rent Growth Among Nation’s Fastest
The Eclipse is surrounded by award-winning schools and high-end residential neighborhoods like Sugarloaf and River Club, plus cultural amenities like Infinite Energy Center and the Mall of Georgia. The average household income (5-mile radius) is approx. $71K and is projected to grow 15% by 2022. High-income families are moving to the northern suburbs for the schools and large concentration of jobs, supporting the luxury rental market.
FORECASTED GROWTH IN GWINNETT COUNTY
Located 30 miles northeast of Atlanta, Gwinnett County is home to 120 international HQ firms and is #1 for net migration among Atlanta counties. Within the next few years, the population of Gwinnett County is projected to exceed 1,000,000 people. Notably, Gwinnett’s population growth is outpacing metro Atlanta area as a whole, according to a recent Atlanta Regional Commission report.
Duluth has a 30% higher share of 4 & 5 star apartments compared to the metro as a whole, yet nominal rent levels remain comparatively low. As rents in Atlanta’s urban core continue to increase, renters will push outward to more affordable suburbs.
DIRECT JOB ACCESS, SHORTER COMMUTES
The Eclipse is located within the Gwinnett Place Community Improvement District, boasting 6,049 jobs per square mile (avg), compared to 800 for Gwinnett County as a whole. Residents enjoy faster commutes and back-door access to North Fulton and the I-85 corridor, plus Gwinnett Place- an employment base representing over 1,900 companies and an estimated 24,500 jobs.
The Atlanta metro produces more than 40K college graduates annually, ranking it in the top 10 metros nationwide and ensures a talented workforce to support a growing rental market. The Duluth submarket’s fast-growing population boasts above-average education levels and one of the metro’s lowest unemployment rates.
For more information, contact: Karlin Conklin, Executive Vice President at (971) 888-4010 ext. 104 or firstname.lastname@example.org.
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