Over the years, Mamaroneck, New York-based LRE Management has operated multiple properties totaling 750 apartments in Atlanta’s industrial corridor.
As the real estate investment manager for family offices developed its operational strategy, it also developed confidence in its ability to turn properties in the neighborhood. It put that experience to use with the acquisition of a 778-unit, three-property multifamily portfolio earlier this month, according to a press release.
“They sit in the Southwest Interstate-85, Southeast I-75 and airport submarkets, which collectively total over 220 million square feet of rentable industrial space, according to CBRE's Q2 2024 Atlanta Industrial report,” Eric Londa, founder and managing partner of LRE Management, told Multifamily Dive. “This makes it one of the largest industrial hubs in the Southeast.”
LRE purchased the three properties — built in the early- to mid-2000s — through its inaugural LRE Opportunity Fund I. The company assumed the seller’s loan at an interest rate of 3.84%. It is due in two years.
“We believe that acquiring 2000s-vintage assets in a tier-one market at pre-pandemic pricing and at a significant discount to current replacement cost represents a once-in-a-multi-decade investment opportunity,” Londa said.
The properties include:
- Eastwood Village in Stockbridge.
- Monterey Village in Jonesboro.
- Peachtree Landing in Fairburn.
The three properties include one-, two- and three-bedroom apartments, resort-style pools and fitness centers. LRE plans to renovate the properties and implement operational processes and technology, including better tenant screening and management of bad debt.
“We plan to upgrade the fitness center, pool and playgrounds, as well as improve the landscaping, repair streets and sidewalks and paint building exteriors,” Londa said. “About 130 classic units will be renovated with new cabinets, counters, floors and appliances, and we plan to add washer and dryers in over 200 of the units.”
New partnership
In addition, LRE announced that PGA golfer Patrick Cantlay had joined the firm’s fund as an investor and general partner. He also became a member of the company’s newly formed advisory board.
“Outside of my focus on professional golf, I have always been interested in real estate investing, particularly multifamily properties given their resiliency throughout the economic cycle and high long-term performance,” Cantlay said in the press release. “Having primarily played more of an LP role in my existing real estate investments, the timing feels right to take the next step in this parallel career.”
LRE, which owns 15 apartment communities comprising 4,400-plus units across seven states, plans to continue to seek acquisition opportunities. The firm is targeting markets with diversified economies in the Sun Belt and Midwest that tend to be more recession-resistant, have favorable demographics, high economic and job growth and strong in-migration.
“We also have an inclination to ‘eds and meds’ markets that are supported by large universities, healthcare systems and state government,” Londa said.
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