Elmington and American South Capital Partners pay $55 million for Lawrenceville apartments with 2023 income caps

Elmington Residential and American South Capital Partners (ASCP) paid $55 million for The Asher at Sugarloaf, a 260-unit apartment complex in Lawrenceville, Georgia. Its income limits were set by a 2023 private enterprise agreement with the Gwinnett County Housing Authority. The agreement preserves 20% of the units at less than 60% of area median income, 30% at less than 80% and the remaining 50% at less than 120%. ASCP Executive Vice President Tyler Epps told Multifamily Dive that the three bands cover the entire property.

ASCP contributed $18 million of equity, roughly a third of the $55 million price. Federal Capital Partners, which bought the complex in 2021, sold it to the pair, Epps told Multifamily Dive. Patterson Real Estate Advisory Group arranged the financing, according to the release. It is the first purchase the two buyers have made jointly, the release said.

The county agreement includes a tax abatement. "It's a very strong tax abatement program," Epps said. Elmington will manage the asset, relying on what Epps described as its specialization "in the compliance side and managing both affordable and market-rate properties." In the release, Elmington Executive Vice President Jason Abel said the "investment significantly strengthens our ability to execute large-scale preservation strategies."

Epps described a modest renovation program for a 2008-vintage property that is 96% occupied. Most units are in original condition or have been partially renovated, he said. The planned work is cosmetic: subway tile backsplashes, vinyl plank flooring and elevated countertops trimmed down so tenants can eat at the counter. The building was "very, very well maintained," he added, and its property condition assessment noted under $2,000 of deferred maintenance.

Elmington has nearly 14,000 units across 70 properties in 10 Southeastern states. "This will be kind of a perfect opportunity for them to step into a strong asset day one with their institutional affordable expertise," Epps said. He put the location in "one of the fastest-growing corridors in Atlanta, up in Gwinnett County, off Sugarloaf Parkway."