Investment Info:
Large multi-family (5+ units) commercial investment investment in Stone Mountain.
Purchase price: $49,000,000
Grove Parkview is an institutional-grade multifamily asset in a thriving market. The property has been well maintained, and there is a clear opportunity to add value by continuing a proven renovation strategy. With strong market fundamentals and room to push rents, this deal presents an attractive risk-adjusted return for investors.
What made you interested in investing in this type of deal?
We were drawn to Grove Parkview because of its location in a high-growth market, the ability to assume an attractive Fannie Mae loan at 4.74%, and the success of the current owner’s renovation strategy. With 150 units already updated and achieving an average rent increase of $200, we saw a clear opportunity to continue the value-add plan and maximize returns. The 10 year historic occupancy average of 95%, consistent rent growth and delinquency below 1% made it a no brainer
How did you find this deal and how did you negotiate it?
This opportunity came to us through our strong broker relationships and direct industry connections. We negotiated favorable terms, including assuming the existing loan with below-market interest rates, which enhances our ability to generate strong cash flow from day one.
How did you finance this deal?
We are assuming a Fannie Mae loan with a fixed interest rate of 4.74%, significantly lower than today’s lending rates. This loan assumption provides stability and enhances investor returns by reducing interest rate risk.
How did you add value to the deal?
The current ownership has already renovated 150 units and demonstrated the ability to increase rents by approximately $200 per unit. Our plan is to continue renovating the remaining 105 units, bringing them up to modern standards and maximizing rent potential. Additionally, we will implement operational efficiencies to improve overall NOI.
What was the outcome?
We closed this deal on March 6, 2025. Investor interest has been strong, and we are excited about executing our business plan to drive value and deliver solid returns.
Lessons learned? Challenges?
One of the key lessons from this deal is the importance of securing below-market debt, as the loan assumption significantly enhances the investment’s attractiveness. The biggest challenge has been navigating the loan assumption process, which requires thorough documentation and lender approvals, but the long-term benefits far outweigh the short-term hurdles.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, we worked closely with experienced brokers, a knowledgeable transaction attorney, and a strong property management team, all of whom have been instrumental in ensuring a smooth process. Their expertise has been invaluable in structuring the deal and preparing for a successful transition.
