Development

Westplan Cheshire Bridge Apartments includes the development of two Class A apartment complexes: Accent Morningside and Accent 2050. The complexes are situated diagonally opposite from each other on Cheshire Bridge Road in Atlanta, Georgia. There is a total of 437 units. Cheshire Bridge is a transitioning area that lies between two popular and economically strong business districts.

Key data

Developer Westplan Investors
Investment date December 29, 2016
Foundation costs $76.8M
Construction lenders  $26.7M Wells Fargo
$21.8M Renasant Bank
Equity invested $28.3M
Original return 14.5% IRR p/y
Original duration 3 years

Challenges

  • Environmental remediation
  • Brownfield program/tax restructuring process
  • Multiple site assemblage
  • Buyout of existing retail tenants
  • Rezoning with coordination of multiple neighborhoods
  • Debt and equity financing
  • Zoning plan changes with a lot of neighborhood consultation

Result

The Accent Morningside project has since been completed and fully leased. After about 3 years, the complex was sold for more than $54 million, this significantly exceeded the original proforma price of $214,000 per unit. At the start of the investment, we assumed a selling price of $214K per home. Accent 2050 has also been completed and once it reaches stabilization it will also be sold.