700 Fourth Street
Athens, Georgia 30601

Georgia Green Townhouses

700 Fourth Street
Athens, Georgia 30601

Key Facts

Unit Count:   164

Product:        Rental Multifamily

Size:               157,068 SF

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Georgia Green Townhouses is a twenty building 164 unit rental townhouse community located on over twelve acres in Athens, Georgia. The property is within walking distance of the University of Georgia. After removing the General Partner, the majority owners sought out TRG to advise them on a strategy to stabilize the asset in the short-term and generate a capital event to free up equity and maximize their investment.

Prior to TRG’s involvement the property had experienced substantial uncertainty, four different ownership groups and three name changes over the previous five years. While the most recent management team’s strategy had been to go after the lucrative student rental market, poor execution, limitations with the unit mix and layouts and limited amenities resulted in occupancy of less than 50%. Unable to generate enough rental income, this created a cycle where the physical condition had deteriorated with many units offline due to many years of deferred maintenance and poor security, resulting in an undesirable tenant mix and impeded effective leasing.

Through implementing our management suggestions which included repositioning the property, installation of a new management company, culling the rent roll of nonpaying and unsuitable tenants, streamlining staffing, better managing operating expenses, and introduction of an incentive program to attract more tenants: operations were stabilized. TRG then presented two options to the Investors to position the property for the long-term by addressing deferred maintenance through gradually bringing units back on line or undertake a full scale renovation. In order to minimize capital requirements the investor elected the first option. In the succeeding months occupancy increased and operating costs were brought more in line with current market rates.

Leveraging the positive trajectory of the property and favorable market conditions, the sellers elected to sell the property. TRG advised the Investors on the best structure for a transaction. The Investors were able to locate a buyer at a price which produced a small gain, instead of the substantial loss that had been anticipated.