ARC pays $52 million for Atlanta-area rental community

CBRE arranged a $34.2 million senior loan and $11.7 million preferred stock investment to finance the acquisition of The Preston, a 334-unit apartment complex located in McDonough, Georgia, about 30 miles southeast of downtown Atlanta.

Blake Cohen and Charlie Clark of CBRE Capital Markets’ Debt & Structured Finance in Atlanta represented the borrower, ARC Multifamily, who purchased the property for $52.375 million. The senior loan was guaranteed by Fannie Mae and Related Fund Management provided the preferred equity.

CBRE’s Blake Cohen added: “We looked at several different financing scenarios, but the senior loan plus preferred equity structure ultimately proved to be the most accretive from a leverage and blended cost perspective. capital.

Located at 100 Preston Creek Dr., The Preston was built in 2001 and features a mix of one-, two- and three-bedroom units ranging from 767 square feet to 1,794 square feet. Community amenities include two swimming pools, a grilling area, a business center, and a residents’ lounge.