AVA Gainesville

Origin Investments and TWO Capital Partners Align Expertise for $86.7 Million Build-For-Rent

(BFR) Ground-Up Development Community in Suburban Atlanta

CHICAGO and ATLANTA (March 14, 2023)—Origin Investments, a leading private equity real estate fund manager, and TWO Capital Partners, an Atlanta-based residential developer and investment firm, are combining specialized areas of expertise in the multifamily sector to develop a new build-for-rent (BFR) community within an Opportunity Zone in Gainesville (suburban Atlanta).

The joint venture has begun the development and construction of AVA Gainesville, 40 miles northeast of downtown Atlanta, on a 24.8-acre site at 1434 Hudgins St. The $86.7 million project will feature 231 rental units comprising a mix of 161 two-, three- and four-bedroom townhomes and 70 three- and four-bedroom single-family homes. The units will average 1,718 square feet of space.

“We’ve known the principals of TWO Capital Partners for a number of years and have looked for the right opportunity to put our specialized and collective knowledge, expertise and skill sets together,” said David Welk, Managing Director, Origin Investments. “In AVA Gainesville, we’ve found the intersection of their rapidly increasing expertise in the BFR space and our track record in Opportunity Zone development.”

Each townhome and single-family home within AVA Gainesville will be equipped with a state-of-the-art technology package as well as market-leading finishes, meeting or exceeding the finishes in any new projects in the area. This includes granite or quartz countertops, wood-like plank flooring, in-home smart technology package, universally available high-speed internet and private backyards. Townhome units will feature one- or two-car garage stalls. The single-family homes each will contain a two-car garage. Common-area amenities will include a resort-style pool and pool deck, fitness and resident co-working facilities, and lawn games.

“Build-for-rent housing continues to grow in popularity, in large part due to prevailing economic conditions,” said Wes Taubel, co-founder of TWO Capital. “There is a significant segment of the population that elects not to participate in homeownership for a variety of reasons. That situation has been accelerating even more as inflation and interest rates increase, pushing out dreams of homeownership.”

The bedroom community of Gainesville near Lake Lanier is northeast of the Atlanta Perimeter. The new development is approximately two miles from the heart of Historic Downtown Gainesville, which is well known for its restaurants, shops, breweries and music venues, making it an attractive location for young renters. Young adults aged 25-44 make up the largest group, 63%, providing a deep segment of prospective renters for the limited new supply that exists or is planned for development within the submarket.

Gainesville is ranked one of the top 50 fastest-growing areas because of its quality of life, affordability and job growth. This trend is expected to be enhanced further in light of the level of municipal investment that is occurring. The site is adjacent to a number of big box retailers, including Target, Lowe’s and WalMart Supercenter, among others.

Northeast Georgia Medical Center (NGMC), recognized as the number one hospital in Georgia for surgical, heart, orthopedic surgery and women’s care in addition to being considered one of the Top 100 Hospitals in America by Healthgrades, is located in Gainesville. More than 15,000 people are employed by the hospital system and the supporting medical offices in the area. The hospital system continues to grow and expand, underscored earlier this year by the announcement of a $700 million expansion that will add 928,000 square feet of space at the Gainesville campus and make it the third- largest hospital in the state.

Another economic and jobs engine for the area is the Northeast Georgia Inland Port, part of the Georgia Ports Authority. This will provide a direct rail connection to the Port of Savannah and will drive additional demand for logistics-related employment.