Northland Investment Corp. closed on a 320-unit apartment complex near Atlanta’s Pill Hill for its first investment in the city and its second in the state.

The real estate private equity firm out of Massachusetts paid $90.55 million for Novel Perimeter, a luxury apartment building completed in 2018 at 5755 Glenridge Drive. Northland acquired the property from Crescent Communities and Bluerock Residential Growth REIT, with the deal coming out to nearly $283,000 per unit.

Crescent developed the high-end property at the Interstate 285 and state Route 400 interchange minutes northwest of Pill Hill, Atlanta’s premier health care hub that hosts the highest concentration of medical health care providers in Georgia. The property is also located close to the Central Perimeter business district and in proximity to several large corporate campuses including the U.S. headquarters of Mercedes-Benz.

Novel Perimeter sold quickly after having only been on the market for about 45 days, Kyle Brock, managing director with Crescent, told CoStar. The selling venture had initially intended to bring the property to market earlier in the year, though plans were delayed due to the onset of the coronavirus pandemic. The sellers ultimately listed the property after market and property fundamentals proved resilient amid the ongoing public health crisis.

Crescent and Bluestone completed lease-up at Novel Perimeter in September, with the property stable at approximately 91% leased since that time, Brock said.

This acquisition marks the first in Atlanta for Northland, which highlighted the area’s demographics and the property’s top-of-market amenities as primary motivators behind the purchase. Novel Perimeter offers one- to three-bedroom units and sports a 2,500-square-foot gym with a dedicated yoga and spin room, a saltwater pool, coffee bar and a tanning shelf and cabanas.

Northland closed on its first apartment investment in Georgia earlier this year with the $41.4 million purchase of Lofts at Zebulon in Macon, a city located roughly 85 miles southeast of Atlanta. Northland owns and operates more than 25,000 apartment units across the country.

For the Record
Chris Goldsmith and Patrick Jones of Walker & Dunlop represented the selling venture in negotiations. CBRE Multifamily Capital provided $64.33 million in acquisition financing to the buyer.

For more detailed information on this transaction, please refer to CoStar COMPS #5314493.

The post Northland Breaks Into Atlanta Apartment Market With Deal Near Pill Hill appeared first on Northland.

A Boston multifamily investor has made its first foray into Atlanta and plans to buy up metro units over the next few years.

Northland Investment Corp. purchased Novel Perimeter, a 320-unit luxury apartment complex off Glenridge Drive overlooking Georgia 400 in Sandy Springs, for $90.5M earlier this month, according to Databank, which tracks real estate transactions.

Crescent Communities developed Novel Perimeter in 2016 and sold it to Northland, which owns more than 80 apartment and commercial properties in the South, Southeast and Northeast.

It has been eyeing the Atlanta market for two years before this purchase, Northland Chief Investment Officer Matthew Gottesdiener said. The firm hopes to acquire at least 2,000 units in the metro area over the next few years, including high-rise luxury apartments inside the city.

“In Tampa, Denver, Orlando, we own downtown vertical assets,” Gottesdiener said. “And that will be in our future in Atlanta, too.” Northland targets stabilized Class-A apartment assets as well as value-add properties that require a significant capital infusion to reposition, he said. He didn’t identify any other Metro Atlanta properties the firm is currently considering, but said that ground-up development — which it mainly does in the Northeast — is also a possibility in Atlanta.

Given Northland’s typical hold time of at least 20 years, the firm sees Atlanta as a promising growth engine, especially with its burgeoning technology sector that Gottesdiener likened to Austin 15 years ago. Austin was recently ranked as the sixth-most-populous city with tech talent in the U.S. by CBRE in its 2020 Tech Talent Report, behind New York and Toronto. Atlanta was ranked ninth.

“The increasing number of graduates choosing to stay in town to me is a powerful and encouraging indication,” he said.

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ATLANTA, GA (December 15, 2020) – Northland Investment Corporation today announced the acquisition of Novel Perimeter, a best-in-class luxury multifamily residential property that features 320 thoughtfully-designed one- to three-bedroom homes, as well as a suite of high-end amenities. This acquisition represents Northland’s entrance into the competitive and highly desirable Atlanta market.

“Novel Perimeter is a significant acquisition for Northland; we are excited to expand our ownership in Georgia and to enter Atlanta, one of the most dynamic and economically vibrant markets in the US,” said Matthew Gottesdiener, Chief Investment Officer at Northland. “The property is a trophy asset that offers an exceptional transit-oriented residential experience through its luxury amenities and prime location at the doorstep of Atlanta’s largest white-collar employment hub. We are excited to introduce Northland’s best-in-class operations and long-term committed ownership to Atlanta, and to welcome this city to the growing list of core Northland markets: Boston, Austin, Denver, Charlotte, Charleston, Orlando, Tampa/Sarasota, Fort Myers, Palm Beach County, Tucson, and Albuquerque/Santa Fe.”

Novel Perimeter is ideally located just steps from both the Perimeter business district, one of the country’s largest employment hubs for Fortune 500 companies, and “Pill Hill,” the largest aggregation of healthcare in the state, comprised of three world class medical facilities. Coupled with its Sandy Springs address, Novel’s unique location offers residents an unparalleled combination of proximity to Atlanta’s best jobs and amenities, and a top ranked school system in one of the most prized suburbs in the city.

Residents will also enjoy a full suite of top-tier amenities. Novel Perimeter offers a 2,500-square-foot gym featuring cutting-edge Technogym equipment and a dedicated yoga and spin room; a modern drop-in work space with a boutique coffee bar featuring Land of a Thousand Hills coffee; a well-maintained outdoor dog run and pet washing area; and thoughtful, flexible workspaces designed to keep residents inspired at all times.

The elegantly designed homes feature upscale design elements including Nest Thermostats, USB and electronic Smart outlets and in-home washer/dryers, along with sophisticated finishes including white shaker style cabinets, grey quartz countertops, artisan tile backsplashes, plank wood flooring, and large soaking tubs or walk-in showers. Residents will also enjoy exclusive outdoor amenities, including an all-season open-air kitchen featuring a wine fridge, TV and pool table; an elegant pool courtyard with al fresco dining space, grills and a fire pit; a tranquil saltwater pool with bubblers, a tanning shelf and cabanas; and chic outdoor lounge areas that include a fountain courtyard featuring a fireplace, TV, pizza kitchen and ping-pong table.

Northland owns and operates a diversified multifamily portfolio that includes more than 25,000 units across the U.S. This acquisition adds Atlanta to Northland’s portfolio of long-term secondary and tertiary markets within New England, Austin, and Southwestern and Southeastern United States.

For more information and updates, follow Novel Perimeter on Facebook, and visit its website at https://www.novelperimeteratl.com/

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