by Stephen Ursery
Ashcroft Capital, a fully integrated multifamily investment firm, and National Property REIT Corp. (“NPRC”), a full service REIT that invests in and operates real estate assets, today announced their acquisition of Elliot Norcross (formerly Vida Apartments by ARIUM), a garden-style community located in one of the fastest-growing submarkets in the Atlanta metropolitan area. Elliot Norcross features 687 apartment units and offers quick access to Interstate 85, one of the primary thoroughfares in the city. Birchstone Residential, Ashcroft Capital’s in-house property management company, has assumed day-to-day management of the community.
NPRC, the majority equity investor in this transaction, focuses on acquiring tenant diversified real estate assets and, as of Sept. 30, 2021, owned 51 multifamily properties with over 20,000 units across the U.S. The off-market acquisition represents Ashcroft Capital’s first transaction with NPRC, and the companies are actively seeking further acquisition opportunities to pursue together. Elliot Norcross also marks Ashcroft Capital’s first acquisition in Norcross and the fourth in the company’s rapidly growing Atlanta-metro portfolio.
“We’re excited to team up on this acquisition with NPRC, which, over the past decade, has acquired 73 communities similar to Elliot Norcross,” said Frank Roessler, founder and CEO of Ashcroft. “Together with NPRC, we look forward to taking over this property because we feel it offers significant upside potential based on remaining capex and strong submarket rent growth. Only 30% of the units have been renovated, which provides the opportunity to add value by upgrading the classic units. Additionally, Norcross is becoming more and more desirable due to its proximity to Atlanta’s employment centers and its highly-rated school districts.”
Norcross has become a sought-after submarket due to its location directly amidst Atlanta’s I-85 industrial corridor, which is one of the largest industrial districts in the Southeast and represents one of the metro’s primary employment centers. Prominent employers in the Gwinnett County submarket include Comcast, Amazon, Mitsubishi, Hewlett-Packard, and Asbury Automotive.
“Elliot Norcross marks our first joint venture with a major institutional partner and represents a significant expansion of our institutional platform,” said Bill Kay, managing director of capital markets for Ashcroft Capital. “We’re eager to partner with NPRC on an asset that we believe has significant operational upside and value-add potential in a vibrant, on-the-rise submarket. Furthermore, our emerging presence in the Atlanta market gives us the manpower and the infrastructure to deliver high levels of resident satisfaction and strong asset performance across the metro area.”
Renovation efforts at Elliot Norcross, which will be executed by Birchstone’s construction team, are expected to include further updating and modernizing the amenity spaces, improving curb appeal, updating landscaping, and implementing signage upgrades. In-home anticipated improvements include the addition of stainless-steel appliances, luxury laminate countertops, tile backsplashes, vinyl plank flooring, new cabinet fronts with modern pulls, and upgraded lighting and plumbing fixtures. New management also plans to add washer-dryer sets to approximately 600 homes.
Situated across 52 acres, Elliot Norcross was built in two phases beginning in 1972, and offers spacious one-, two- and three-bedroom homes with an average unit size of 1,021 square feet. Eighty-five percent of the homes are of the two- and three-bedroom variety, including 128 townhomes. Existing community amenities include two resident clubhouses, two resort-style swimming pools, picnic and grilling stations, fitness center, two soccer fields, play area, and business center.
“Ashcroft Capital has grown an impressive multifamily portfolio in the Atlanta metro over the past two years by strategically acquiring older vintage workforce housing communities that have significant upside potential via renovation programs and the implementation of operational efficiencies,” said Casey Chayet, an investment professional on the NPRC team. “NPRC is pleased to team up with Ashcroft on this acquisition, and we fully expect Ashcroft to reposition Elliot Norcross as a best-in-class community within the fast-growing Norcross submarket.”