CP Capital US, a New York-based real estate manager specialising in rental housing investments, has added the Ascent Athens residential complex in Athens, Georgia, to its portfolio. The transaction involves an ensemble of 200 residential units, which meet the US Class A standard. The real estate manager was founded in New York in 1989 by the German family office Harald Quandt and has since made significant investments. The company manages an investment volume of approximately US$16 billion, spread across 71,000 residential units and 2 million square metres of commercial space.
The acquired residential units have an occupancy rate of around 95 per cent. Jay Remillard, Executive Managing Director of CP Capital, stated that this acquisition reflects the company's strategy, which aims to transform market insights into investment opportunities. This includes investments in selected new-build projects as well as the targeted acquisition of prime rental housing properties at prices below replacement cost in submarkets with low supply and high demand. The property is centrally located in Athens and offers walkable access to transport infrastructure, retail, dining options and services.
Built in 2020 by US project developer Westplan, the residential complex offers a range of amenities. These include a spacious swimming pool area, a fitness centre, a barbecue area, a clubhouse and a lounge area. Additionally, conference rooms and a business centre are available, while services such as parking and package delivery, as well as cleaning and pet services, round off the offering.
The city of Athens, with approximately 215,000 inhabitants, is largely shaped by the University of Georgia. The university has 43,000 students and 11,500 faculty and staff, generating an annual economic output of US$8.4 billion for the state of Georgia. This factor contributes to fiscal stability and ensures consistent demand in the residential real estate sector. The investment also benefits from a diversified local employment structure and a limited housing supply in the short term.
- —City centre location with good connectivity
- —New build from 2020 to Class A standard
- —Extensive amenities and services
- —Demand stability due to university and labour market
Mr Remillard added that Ascent Athens represents exactly the kind of opportunity the company seeks. It is a prime residential property in its local submarket with no direct competition. Other offerings in the area consist predominantly of individually sold townhouses and older, non-institutionally managed multi-family homes, which often show deferred maintenance and fewer amenities. As a new-build in the 'Class A' category, Ascent occupies a special position. This provides the rental housing property with a strong position in rent setting and enables it to attract the most creditworthy tenants in the submarket. The lack of direct competition protects the property from strong competitive pressure and supports assumptions regarding rent increases throughout the holding period. The acquisition allows market entry into a stable market environment under attractive conditions and creates the prerequisites for an increase in the property's value during the holding period.
CP Capital and its equity partners will further develop the property into an institutionally managed asset to position it for a smooth exit in the coming years. Paul Doocy, Senior Managing Director at CP Capital, explained that the supply of distressed properties is increasing, and maturing loans as well as breaking partnerships are opening opportunities to acquire high-quality properties below replacement cost, with an equity cushion in the cost basis included from day one. The acquisition of Ascent Athens underscores the team's effective approach to rental housing investments. Doocy emphasised that a portfolio of well-located properties in markets with limited supply and solid long-term fundamentals is being built on the basis of disciplined investment review and firm conviction.
