264 Units — Atlanta Metro
Case Study: Refinance Event
IMG closed the $31.5M refinance of Amberlake Village in January 2023. The refinance generated a 36% return of capital to clients plus additional funds for ongoing property improvements. Amberlake’s appraised value at $51.7M represents 47% appreciation in less than four years.
Year built: 1985
Location: Duluth, Georgia
Submarket: Outlying Gwinnett County
Acquired: July 2019
Purchase price: $35.1 million
1031 exchanges: 4
Equity invested: $14.8 million
CapEx budget: $2.7 million
IMG has been expanding its footprint across the Atlanta MSA since 2013, generally targeting acquisitions north of downtown in areas where rental housing fundamentals are solid. IMG identified the Amberlake acquisition as another quality multifamily investment with the characteristics that made its prior value-add projects in the Atlanta MSA successful: acquiring a competitive asset in a desirable neighborhood, then executing strategic renovations to drive rents and capture income and appreciation growth.
Upon acquisition, IMG rebranded the property and replaced site management to elevate the property's brand within the submarket's competitive set. IMG's Asset Management team guided the new site management team to transform this property into what it is today.
Amberlake Village has benefited from $2M+ of capital improvements to date. Improvements to unit interiors and community exteriors have elevated the tenant experience and created substantial property value. Refreshed apartment interiors and new, in-demand amenities have drawn new residents and contributed to rent premiums of $130 - $200.
COVID’s economic impacts presented unexpected challenges to operations just nine months into IMG's hold period. IMG's Asset Management worked closely with the Amberlake on-site property management team to successfully secure housing funds dedicated to supporting tenants facing pandemic-related unemployment. A focus on maintaining peak occupancy and managing cash flows conservatively through the pandemic and into 2022 delivered NOI growth of 10% annually over 3.5 years of ownership.