By Douglas Sams – Commercial Real Estate Editor, Atlanta Business Chronicle
A Peachtree Corners redevelopment that turned two office buildings from the 1970s into almost 300 modern apartments has sold for just over $66 million.
Atlanta based apartment giant Cortland bought the 296-unit Echo Lakeside apartments, paying $66.1 million, according to Gwinnett property records.
For decades, the property contained one of many low-rise brick office buildings in Technology Park, a sprawling office park from the 70s. The city of Peachtree Corners is working with developers to add more residential density within Technology Park. Cortland paid over $220,000 per unit to acquire the apartments.
Prudential Life Insurance Co. provided $34.5 million in financing, according to property deeds.
The seller was Brand Properties.
As a strategy to maximize property values, the redevelopment appears to have worked for Peachtree Corners. Prior to demolishing the office buildings for the new apartments, the property sold twice, once for $2.2 million in 1995, then again for $2.8 million in 2004, according to Gwinnett County real estate records. It will be interesting to see if the success of Echo Lakeside leads to similar projects in Technology Park.
Cortland acquired the apartment project with its growth and income fund, which focuses on core and core-plus properties in Sunbelt markets.
The apartments are new. Construction on Echo Lakeside wrapped up earlier this year. The project is being rebranded as Cortland Peachtree Corners. Units have been renting between $1,110 and $2,100.
Cortland now has an Atlanta portfolio with more than 11,000 units.
Adding residential density to Technology Park is part of a larger effort to modernize Peachtree Corners with new housing, restaurants, shopping and office space that people can walk or bike to.
The largest example of that effort is the planned $103 million Peachtree Corners Town Center. Cortland’s project is bordered by two lakes where residents can fish and kayak. It will also link to a planned 11.5-mile walking trail that will wind through Peachtree Corners.