Target Information

Harbert United States Real Estate Fund VII, L.P., along with its parallel fund (collectively known as "HUSREF VII"), has successfully acquired The Summit Apartments, a multifamily residential property located in Union City, Georgia. The acquisition was completed in collaboration with HUSREF VII's joint venture partner, Eaglebrook Real Estate. The Summit, comprising 252 units, was developed over two phases in 1974 and 1990 and features a combination of townhome and garden-style units.

The property is strategically situated within the Atlanta Metropolitan Statistical Area, approximately 18 miles southwest of downtown Atlanta and just nine miles from the Hartsfield-Jackson Atlanta International Airport. Its advantageous location grants residents easy access to various amenities, including Atlanta Metro Studios, numerous dining options, retail outlets, and essential commercial services.

Industry Overview

The real estate market in Georgia, particularly in the Atlanta Metropolitan area, has been experiencing significant growth, driven by a robust economy and an influx of new residents. The area has become a hub for various industries, including logistics, technology, and entertainment, which has stimulated demand for multifamily housing. This growth trend is bolstered by the state’s favorable business environment, attracting both national and international companies.

Union City, in particular, benefits from its proximity to major transportation networks and a highly skilled labor pool. The submarket has seen notable job growth in sectors such as industrial logistics, distribution, and film production, making it an increasingly attractive location for families and young professionals seeking rental housing.

Moreover, the availability of 24 million square feet of industrial space within a two-mile radius of The Summit Apartments positions the submarket as a critical zone for employment, hosting various prominent companies like Amazon, Proctor & Gamble, and General Electric. This concentration of major employers contributes to the overall economic vitality of the area and supports a steady demand for housing.

Furthermore, local investments in infrastructure and community development have further enhanced the appeal of Union City, paving the way for continued growth in both population and economic activities. Such aspects make the region a lucrative investment opportunity in the multifamily sector, conducive to sustained occupancy rates and rental growth.

Rationale Behind the Deal

The strategic acquisition of The Summit Apartments aligns with HUSREF VII's objective to expand its portfolio in high-growth areas. By investing in a property within the rapidly developing Atlanta metropolitan region, HUSREF VII positions itself to capture the demand for quality housing driven by the strong job market and economic development initiatives.

Furthermore, the potential for rental growth and property appreciation in this area presents an appealing opportunity for long-term returns, making this acquisition a well-timed and strategic addition to the fund's real estate investments.

Information About the Investor

Harbert United States Real Estate Fund VII, L.P. is a distinguished investment vehicle focusing on multifamily housing and other income-generating real estate across the United States. The fund is known for strategically identifying and acquiring properties in high-demand regions that exhibit significant growth potential.

With a strong track record of successful investments and a commitment to enhancing asset value through proactive management, Harbert brings considerable expertise and resources to its real estate ventures. The partnership with Eaglebrook Real Estate further strengthens its operational capabilities, ensuring the team effectively drives performance at The Summit Apartments.

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The acquisition of The Summit Apartments could potentially be a wise investment for HUSREF VII and Eaglebrook Real Estate, given the favorable market dynamics in the Atlanta metropolitan area. The property's strategic location, combined with ongoing industrial and economic growth in the region, presents numerous opportunities for both rental growth and property appreciation.

Moreover, the current demand for multifamily housing driven by the influx of new residents and job creation further solidifies this investment's potential. The diversity of employment opportunities within proximity to the property indicates a robust demand for rental units, contributing to stable occupancy rates.

However, it is essential to monitor market trends and the performance of the property closely. Economic fluctuations can impact tenant demand and rental rates, which could influence the overall investment returns. Despite this, the positive outlook for Union City and surrounding areas is promising.

In conclusion, HUSREF VII's decision to invest in The Summit Apartments seems strategically sound, provided that management implements effective property operations and capitalizes on the favorable market conditions.

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