Pacific Urban Invests $102.5M in Atlanta Apartments

A California investor just made its first multifamily play 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, at 1265 Mount Vernon Highway, in the Perimeter Center, a sprawling mixed-use hub in northern Atlanta. The price comes out 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 deal.

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. The Perimeter Center is one of the largest business districts in Atlanta.

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

Atlanta is consistently ranked as a top market for multifamily investment, although sales volume has dropped with high interest rates making lending more difficult, according to Matthews Real Estate Investment Services.

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

The market saw six consecutive quarters of negative absorption before leasing picked up again last spring.

Mount Vernon Flats, which has been rebranded as the Kinsley at Perimeter, offers one-, two- and three-bedroom units, spanning from 779 square feet to 1,560 square feet. Amenities include two resort-style pools with outdoor kitchens, a cafe, fitness center and valet 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 firm paid $185 million for the 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 roughly a year before that.