FOR IMMEDIATE RELEASE Date: August 14, 2018
ADMIRAL CAPITAL GROUP AND MCCANN REALTY PARTNERS COMPLETE SUCCESSFUL SALE OF DISCOVERY AT RIVER BEND ATLANTA MSA
Atlanta – Admiral Capital Group and McCann Realty Partners announced the successful sale of Discovery at River Bend, a 256-unit multifamily property located in Duluth, GA, in the Atlanta MSA.
Admiral and McCann acquired the apartment community in February 2016 through a joint venture. The investment provided an opportunity to purchase a well-located asset at a discount to replacement cost that provided a value housing alternative to the rapidly growing workforce in the fourth largest manufacturing and distribution center market in the United States.
During its ownership, the joint venture repositioned the property by curing deferred maintenance, enhancing the exterior and upgrading unit interiors. Select improvements included re-siding the entire property, replacing wooden decks, updating the fitness center and installing a new playground amenity. Interior renovations included modernizing kitchen cabinets, appliances and flooring and renovating bathrooms. Overall, the upgrades repositioned the property to compete with higher quality assets with higher overall rents.
“Our strategy is to identify under-capitalized assets in markets with a supply and demand imbalance,” said Dan Bassichis, Co-Founder of Admiral Capital Group. “Discovery at River Bend was an ideal fit and provided the opportunity for our partnership to invest the necessary capital to improve the property and experience for the residents and capture a share of the growing demand and rent growth in the submarket.”
“The team from Pegasus Residential did an excellent job helping us execute our business plan. We were very happy with how the repositioning turned out,” said Thomas Upson, Principal and Managing Director at McCann.
McCann President Matthew Akin said, “We are pleased with the value created by the reposition and renovation. The investment returns exceeded expectations due in part to strong fundamentals and capital markets.”
“The investment in Discovery at River Bend was the continuation of a long-term relationship with McCann,” said Jarett Kaplus, Principal at Admiral. “We have a strong presence in Atlanta and continue to proactively seek additional value-add multifamily investments here and nationwide.”
Derrick Bloom, David Gutting and Hunter Amos, commercial real estate brokers with JLL handled the Discovery at River Bend sale.
The sale represents the first realization for Admiral in its second value-add real estate fund, Admiral Capital Real Estate Fund II, L.P. (“ACRE II”).
About Admiral Capital Group
Admiral Capital Group (“Admiral”) is a real estate and private equity investment firm with offices in New York, San Antonio and Seattle. Admiral was co-founded by David Robinson, US Naval Academy graduate, philanthropist and NBA Hall of Famer, and Daniel Bassichis, formerly of Goldman Sachs. Admiral invests in real estate through a series of discretionary funds co-sponsored with USAA Real Estate and other separate accounts, and targets value-add and core-plus opportunities in office, multifamily, hotel and retail properties. Admiral has acquired over $1.4 billion of real estate assets since 2008. Admiral’s founders also have pledged 10% of their profits to philanthropic causes in certain areas where Admiral invests, building on Robinson’s lifetime commitment to support education and lower-income communities. For more information, visit www.admiralcg.com.
About McCann Realty Partners
Headquartered in Richmond, Virginia, with offices in Houston, Texas, McCann Realty Partners (“McCann”) is a real estate investment and operating company that specializes in the acquisition, construction, development and operations of multifamily communities in the Southeast, Southwest, and Mid-Atlantic regions. Since inception, McCann has acquired 31 apartment communities totaling more than 8,390 homes in transactions valued at approximately $840 million. McCann has also completed or has under development 10 communities totaling 2,991 homes with an estimated completed value of $400 million. For more information, visit www.mrpapts.com.