JLL Income Property Trust acquires luxury Atlanta apartment community

JLL Income Property Trust has acquired Siena Suwanee Town Center, a 240-unit, luxury apartment community in the north-Atlanta suburb of Suwanee, Georgia.  The purchase price was approximately USD70 million.

Suburban Atlanta is a recommended portfolio "overweight" and is ranked within the top quartile of LaSalle’s Research & Strategy Group’s proprietary market tracking database. Atlanta-area apartment investments have outperformed overall US apartments within the NCREIF institutional index over one, three, five and 10-year periods. Sienna Suwanee Town Center is complemented by JLL Income Property Trust’s 2017 acquisition of The Reserve at John’s Creek Walk, a 210-unit Class A apartment community located in Johns Creek, less than 10 miles away. This northeast Atlanta submarket ranks favourably due to above market population and job growth, ranking 12th out of 150 US cities in forecasted employment growth over the next four years.

Constructed in 2018, Sienna Suwanee Town Center features luxury unit finishes and provides residents with a robust community amenity package including a salt-water resort style pool and 24-hour multipurpose fitness centre. The community also has desirable live/work/play features and is walking distance to numerous retail stores and restaurants, in addition to local community parks. 
“This addition to our growing apartment portfolio fits extremely well with our suburban strategy to invest in amenity-rich, newer communities located in highly-rated school districts with high barriers to entry for new competition,” says Allan Swaringen, JLL Income Property Trust President and CEO. “This investment brings our aggregate apartment allocation to over $1 billion, with 3,842 apartment units across 16 communities representing 33 percent of our USD3.3 billion, 82-property portfolio. Our unique UPREIT structure along with our diversified portfolio and daily valuation were attractive to the sellers who chose to contribute this property in exchange for interests in our fund rather than selling for cash. This provided the owners of Sienna Suwannee a tax efficient sale with the benefit of long-term estate planning while allowing our fund to make a strategic acquisition with no cash outlay.”
The Gwinnett County area features schools rated A- by and are Silver rated by LaSalle’s research group. The area’s high school ranks among the top two per cent in the country. Historically, apartment communities located in areas featuring a combination of top household incomes and highly rated school districts have outperformed the broader apartment market. These communities tend to have restrictive apartment development policies creating strong barriers to entry.