Kaplan Residential Sells Atlanta Property for $127M

Generation Atlanta. Image courtesy of Kaplan Residential Montreal-based Frankforter Group has acquired Generation Atlanta, a…

Generation Atlanta. Image courtesy of Kaplan Residential

Montreal-based Frankforter Group has acquired Generation Atlanta, a 336-unit, 17-story luxury high-rise apartment building in Downtown Atlanta from Kaplan Residential for $126.9 million, in the largest multifamily sale in the submarket’s history.

Located at 369 Centennial Olympic Park Drive, Generation Atlanta was the first development in the Southeast to feature the Prescient light-gauge steel structural system, which greatly reduced the construction timeline and associated cost by nearly 25 percent. Atlanta-based Kaplan Residential entered into the agreement with Prescient in May 2018 to use its proprietary BIM platform for the development. The use of the Prescient system enabled Kaplan Residential to partner with the City of Atlanta’s initiative to expand affordable housing options.

Property Details

Generation Atlanta has studio apartments to two-bedroom units spanning in size from 459 to 1,512 square feet. Residences feature quartz countertops, custom cabinetry, kitchen islands, stainless steel appliances, full-size washers and dryers, private balconies and smart keyless entry. Property amenities include an outdoor theater, resort-style rooftop swimming pool and sundeck, bowling alley, EV charging stations, coffee bar, state-of-the-art fitness center, yoga studio and SkyBar Lounge.

The property is minutes away from Atlanta’s landmarks including the World of Coca-Cola, National Center for Civil & Human Rights, Georgia Aquarium, CNN Center, Centennial Olympic Park, State Farm Arena and Mercedes-Benz Stadium. The area also has more than 400 restaurants and numerous office buildings.

Frankforter Group Holdings

Stephane Benalal, director of acquisition at the Frankforter Group, said in a prepared statement Generation Atlanta represents the type of assets the firm is actively pursuing in major metro areas in the Sunbelt and plans to spend about $2 billion on acquisitions.

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Generation Atlanta marks the Frankforter Group’s first acquisition in Downtown Atlanta but the real estate investment and asset management firm has a strong presence in the Greater Atlanta Metro market with more than 2,000 units currently in its portfolio. Earlier this year, Frankforter Group purchased Garden Walk Apartments, a 240-unit apartment community in the Williamsburg Park submarket, in a value-add play. In May 2019, the firm acquired a 623-unit portfolio in metro Atlanta for $39.5 million. The portfolio consisted of The Preserve at Collier Ridge, a 419-unit community in Atlanta, and Orchard Walk, a 204-unit community in Decatur, Ga. Frankforter Group entered the Atlanta market in April 2018 with the $10.2 million acquisition of The Station at Richmond Hill, a 181-unit asset in the Lakewood submarket.

Kaplan Pivots to BTR

In July, Kaplan Residential sold Square One, a 203-unit luxury apartment community with 10,000 square feet of retail space in Sandy Springs, Ga., also in the Atlanta market, to Audubon for $56.2 million. Formerly known as One City Walk, the property was 95 percent occupied at the time of the sale.

The sale of both Square One and Generation Atlanta comes as Kaplan Residential focuses on the build-to-rent sector. The firm has long been known for its luxury and market-rate build-to-rent properties and said it pioneered the BTR model in that region with the development of Townhouse Atlanta, a 254-unit luxury townhome community built on eight acres in Atlanta’s Midtown area. More recently, Kaplan Residential purchased two parcels of land in the Atlanta area for more than $11 million with plans to develop both as BTR communities.

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“This deal allows us to both reinvest in build-to-rent projects throughout the Metro Atlanta area and showcase Downtown Atlanta as the residential hub we’ve always believed it is,” Nathan Kaplan, partner in Kaplan Residential, told Multi-Housing News. “We feel strongly the build-to-rent model is the future of the residential real estate sector, allowing (residents) the flexibility, space and upscale amenities the market demands. We are proud to be at the forefront of this trend. The build-to-rent model is versatile and can be implemented in both rural and urban markets.”