by Stephen Ursery
Redwood Capital Group (Redwood), a vertically integrated multifamily investment manager, today announced it has acquired Adley City Springs, an apartment community in Sandy Springs, Ga., and Ascent Cresta Bella in San Antonio. The properties were acquired in separate transactions and reflect Redwood’s commitment to aggressive but strategic growth in the Southeast and Texas.
Redwood began the year with $1.7 billion in apartment assets under management and has a strategic plan to double that total over the next five years. The company expects to complete acquisitions totaling $600 million in the Southeast, Southwest and Midwest in 2021.
Last year, despite all the market challenges, Redwood was able to remain active by completing two acquisitions and three dispositions, representing $182 million in total value. In January 2021, Redwood expanded its Texas presence by hiring Bill Rose as director of investments in the firm’s Dallas-Fort Worth office. Ryan Steppe, director of investments in Redwood’s Atlanta office, has been spearheading the company’s portfolio expansion in the Southeast over the past two years.
“We look forward to continuing to expand our presence in the apartment market in 2021 and beyond. As demonstrated by these acquisitions, we view Texas and Atlanta as important markets in our ongoing expansion,” said David Carlson, managing partner and co-founder of Redwood. “As a fully integrated company with best-in-class asset management, property management and construction management divisions in place, we are well-positioned to grow in a thriving multifamily market and to deliver targeted returns to our investors.”
In keeping with Redwood’s goal of vertical integration, both Adley City Springs and Ascent Cresta Bella are being managed by Redwood Residential, its property management subsidiary. Redwood Residential now manages almost 6,000 units nationally, approximately two-thirds of Redwood’s portfolio.
The 291-unit Adley City Springs is a recently constructed, mid-rise property within walking distance of the restaurants and entertainment venues in downtown Sandy Springs. Additionally, the Atlanta suburb has more Fortune 500 companies per capita than any other city in the country and is home to regional headquarters for State Farm, Mercedes Benz, Cox Enterprises, First Data Corp. and others.
Adley City Springs offers studio, one- and two-bedroom floorplans with an upscale, spacious and modern design. In-unit amenities include nine-foot ceilings, granite countertops, stainless steel appliances, power-saving digital programmable thermostats, walk-in closets, large balconies or patios and in-unit washers and dryers. Community amenities include a spacious resident social lounge with pool table, shuffleboard and games; resort-style rooftop saltwater pool; outdoor grilling stations and al fresco dining area; business center with conference rooms and private offices; movie theater; golf simulator lounge; and dog-washing “paw spa.” Redwood plans to add new top-of-the-line equipment to the social lounge and fitness center. The community also features nearly 10,000 square feet of retail space that already includes an Italian restaurant and will soon add a medical spa.
“We are exceptionally pleased to own Adley City Springs, a best-in-class apartment community in one of Atlanta’s strongest performing submarkets,” Steppe said. “This acquisition is yet another example of Redwood’s commitment to purchasing top-performing communities in supply constrained submarkets with strong employment fundamentals. Given all of the positives of this community and the surrounding submarket, I look forward to watching Adley City Springs mature into Sandy Springs’ premiere apartment community.”
The 322-unit Ascent Cresta Bella is in northwestern San Antonio and offers proximity to Interstate 10, multiple employment centers, premier retail such as The RIM shopping center and highly regarded schools.
The community offers one-, two- and three-bedroom floorplans with a modern and stylish ambience. In-unit features include quartz countertops, stainless steel appliances, eurostyle cabinets, hardwood-style floors, kitchen islands, tile backsplashes, wine refrigerators, large walk-in closets, white floating bathroom vanities and ceiling heights of up to 10 feet. Community amenities include an infinity pool with wet deck, poolside cabanas, outdoor kitchens, rooftop terrace, social lounge with panoramic views, resident business center, two-story fitness center with spin room and multiple dog parks.
“In recent years, the northwest San Antonio area has experienced tremendous growth and transformation while attracting new employers and other developments,” Rose said. “With these positive submarket dynamics combined with Ascent Cresta Bella’s stunning features and irreplaceable hilltop location, we believe Ascent Cresta Bella is a unique asset that will thrive with the growth of its surrounding area.”