National commercial real estate company Equity Residential has acquired Skyhouse South, a 23-story, 320-unit apartment building in Midtown Atlanta, according to a press release.
EQR was represented in its acquisition by Allen Eager, a director with brokerage firm Lee & Associates, which announced the off-market transaction but did not disclose pricing, while the seller was a partnership between Novare Group and Batson-Cook Development Company. A June investor presentation by Equity Residential lists the purchase price as $115 million, or about $340,000 per unit.
“Midtown is one of the most dynamic and walkable live-work-play submarkets in Atlanta,” the presentation reads. “It is centrally located, a major job center and a magnet for young professionals like EQR’s core demographic.”
The deal for the building, which is at 100 6th St. NE, represents a re-entry into the Atlanta market for Equity Residential, according to the presentation and a statement by Eager. A real estate investment trust, Equity Residential owns or has investments in more than 300 properties totaling nearly 80,000 apartments units in cities across the U.S., but had no holdings in Atlanta as of the end of the first quarter of this year, according to SEC filings.
“Midtown is expected to continue to benefit from new job creation and limited supply of new competitive multifamily properties,” the presentation goes on.
“The limited number of properties expected to be delivered will need to rent at a significant rental premium to Skyhouse, given high construction costs, positioning Skyhouse well for future rent growth.”
Novare Group and BCDC finished Skyhouse South in 2014. It is one of 18 communities within the “Skyhouse” multifamily program, named so for its top-floor amenity packages, according to BCDC’s website. Two others are in Atlanta: 26-story, 362-unit Skyhouse Buckhead, which opened in 2015, and 23-story, 320-unit Skyhouse Midtown, which opened in 2013, Novare Group’s website shows.