In sync with its perceived strategy of adding premier assets to its portfolio, Associated Estates Realty Corporation AEC, the residential real estate investment trust (“REIT”), acquired 1160 Hammond, situated in the Perimeter submarket of Atlanta, GA. The acquisition of this newly constructed luxury class A+ apartment community is expected to be accretive as well as create value for the company’s shareholders, going forward.
The property includes 345 units with 16,000 square feet of amenity space. As of now, Associated Estates owns 3 properties in Atlanta market comprising a total of 699 units. Including the Perimeter Mall, 1160 Hammond offers 29 million square feet of space for offices, restaurants, entertainment venues and shopping destinations. This property is currently 44.6% leased with an average rent of around $1,550 per month.
Richmond Heights, the OH-based Associated Estates is engaged in property acquisition, advisory, development, management, disposition, operation and ownership activities. The company’s properties are located at high barrier-to-entry submarkets in major metropolitan areas, and 1160 Hammond is an ideal addition to its portfolio. It offers the company a wonderful opportunity to invest in the booming metropolitan areas with healthy demographic trends. We believe the returns accrued from this asset will generate significant value for Associated Estates’ shareholders, going forward.
Some residential REITs worth considering include Silver Bay Realty Trust Corp. SBY, Equity Residential EQR and Essex Property Trust Inc. ESS.
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