Pacific Urban invests $102.5 million in Atlanta apartments

A California investor has just completed its first multifamily transaction in Atlanta with the acquisition of a luxury apartment complex.

Palo Alto-based Pacific Urban Investors paid $102.5 million for the 412-unit Mount Vernon Flats, located at 1265 Mount Vernon Highway in Perimeter Center, a sprawling mixed-use center in north Atlanta. The price comes to more than $248,000 per unit. The four-story complex was built in 1997.

New York Life Investments was the seller, with Walker Dunlop brokering the transaction.

Pacific Urban’s willingness to drop six figures stems from the complex’s proximity to major employers and amenities, including the 1.5 million-square-foot Perimeter Mall and a plethora of hospitals. Perimeter Center is one of Atlanta’s largest business districts.

Pacific Urban views the asset as a value-add opportunity and long-term investment, said Matt Lederer, vice president of investments. Lederer called the acquisition “the first of many” in the Atlanta area, anticipating a “productive 2024.”

Atlanta is consistently ranked as one of the top markets for multifamily investments, even though sales volume has fallen due to high interest rates that make lending more difficult, according to Matthews Real Estate Investment Services.

“Despite the decline in transaction volume, major institutional investors remain optimistic about Atlanta’s prospects for long-term population expansion, job market growth and resulting demand for multifamily properties,” wrote the Matthews analysts.

The market experienced six consecutive quarters of negative absorption before leasing resumed last spring.

Mount Vernon Flats, which has been renamed Kinsley at Perimeter, offers one-, two- and three-bedroom units, ranging from 779 square feet to 1,560 square feet. Amenities include two resort-style pools with outdoor kitchens, a café, fitness center, and valet parking services. Pacific Urban, led by CEO Alfred Pace, has more than $8.5 billion in assets nationwide, with nearly 22,000 units in its portfolio. Last year, the company paid $185 million for a 213-unit luxury apartment tower at 130 West 15th Street in New York. It acquired a 246-unit complex in the Bay Area for $127 million about a year earlier.