Thorough analysis of suburb opportunities of the Atlanta, GA MSA led Balfour Beatty Communities to identify Nesbit Palisades as a prime candidate for our value-add program. Key criteria for the acquisition included its proximity to major corporations such as IBM, Cisco, State Farm, Mercedes-Benz, ADP, Verizon, as well as being one of the fastest growing cities in Georgia in the preceding year, with more than 3% population growth.

At acquisition in July 2016, the property enjoyed 100% occupancy but needed interior and exterior improvements to achieve the maximum rent growth opportunities. An interior unit renovation program was implemented including refinished cabinetry, granite countertops, tile backsplashes and new appliances. In addition, common area renovations included new grilling areas, a renovated clubhouse, window replacement and exterior painting. The combination of enhancements and an aggressive new market rent and renewal program resulted in the average rents increasing by 12% within the first year. Upon successful disposition, the investment produced a 33% IRR within 2.5 years.