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TerraCap Management LLC, a Bonita Springs-based investment firm that has specialized in generating significant returns on assets in select markets, has sold the second of four Atlanta apartment complexes it acquired in 2017.
The 268-unit Crossings at Holcomb Bridge apartments traded for $39 million, a 43% gain over the amount TerraCap paid three years ago.
TerraCap, which acquired Crossings at Holcomb Bridge as part of a four-property deal involving 1,100 units for $116 million, attributes the value gains to property improvements that led to rental rate growth.
Steve Good, TerraCap’s director of acquisitions and a firm partner, says another of the four complexes, a 110-unit community nearby, sold earlier this year for $17.25 million.
The remaining two properties are slated to come to market later this year, Good says.
“We just felt as if we’ve executed our business plan with these assets and they’re ready to sell,” Good says. “There’s been a lot of growth in the area and we’ve made substantial improvements to the assets.”
Robert Witt, a TerraCap asset manager, says the firm’s capital plan updated the Roswell property’s interiors and exteriors and beefed up management, all of which resulted in rent gains of 33%, to an average of $1, 046 monthly.
Good says that TerraCap remains vested in the Atlanta market, despite the sale of the apartments. In July, the company bought the Cobb Corporate Center in Marietta and the Northwoods Commons complex in Norcross, both Atlanta suburbs, for a combined $27.6 million.
Together, the eight buildings there comprise nearly 300,000 square feet of office space.
“We’re still very bullish on the Atlanta area, especially for the long term,” Good says.
In all, the 12-year-old TerraCap’s portfolio contains about six million square feet of commercial space valued at roughly $1.5 billion.
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