Fund II

Arium Northpoint - Fund II

Roswell,

GA

Total Required Equity
$4,835,991
Asset type
Multifamily
Investment Objective
Income
Realized IRR
45%
Hold Period
5 Years
Investment Date
12/20/2012

Investment Summary

Arium Northpoint is a Class B property in an A location. With only 8.1 units per acre, the low density “preserve-like” wooded setting offers its tenants a serene atmosphere. Leveraging off the wooded setting, many of the units include a glass enclosed sunroom for the tenants to enjoy the surrounding beauty. The property’s clubhouse was recently renovated and includes a business and fitness center, along with a terraced pool area. Arium Northpoint is currently stable with an occupancy of approximately 97%. In-place rents vary widely and are below the competitive properties in the area. Stability in pricing and renovation upside should provide for an improved rent roll and a stabilized occupancy of about 95%. Over the first 18 to 24 months of the hold period, 75% of the interior units will be updated with appliances, flooring, light and plumbing fixtures and cabinetry. All exterior deferred maintenance will be handled immediately upon acquisition, including painting, refurbishing the sports court and pool, and upgrading the landscaping. There is potential to increase miscellaneous income though the implementation of a valet trash service and the installation of washing machines in select units.

Key Deal Points

Located in one of Atlanta’s most desirable suburbs with a strong public school system and residents earning nearly 70% more than the metro median.

In-place rents trail market by 10% and Origin believes that value-added capital could attain a 30% return on cost.

Acquired at a discount to other properties in the submarket with similar vintage and quality.

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