TerraCap Management acquires North Atlanta multifamily portfolio for $116 million

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JLL arranges sale on behalf of NexPoint Residential Trust

JLL’s Capital Markets experts today announced the company arranged the sale of a multifamily portfolio in Georgia on behalf of NexPoint Residential Trust (NYSE: NXRT). Florida-based TerraCap Management purchased the four complexes, which are comprised of 1,100-units, for $116 million.

The portfolio includes two communities in Marietta, Georgia: The Knolls, which has 312 units, and The Crossing, which has 380 units. It also includes The Crossings at Holcomb Bridge, a 268-unit community located in Roswell, Georgia, and The Arbors, a 140-unit community in Tucker, Georgia.

“This portfolio aligns well with our investment strategy and portfolio construction for our fourth fund, TerraCap Partners IV LP. We feel this acquisition will bring solid yield and value to our investors given its geographic diversity in growth markets and the opportunity to add value through strategic updates,” said Stephen Hagenbuckle, Founder and Managing Partner of TerraCap Management.

Stephen Good, Director of Acquisitions for TerraCap Management added, “We worked well with JLL and NexPoint for a smooth closing given the short timing and complexity of the transaction. This marks our largest acquisition to date, but also expands our presence in the southeastern Atlantic growth region.”

Managing Directors David Gutting and Derrick Bloom, along with Vice President Josh Magaro, led the JLL team on the transaction.

“Demand is high for value-add multifamily product, especially in suburban areas located just outside major markets,” said Gutting. “This portfolio gave investors the opportunity to establish a presence in several of Atlanta’s most robust suburban submarkets.”

About TerraCap​

TerraCap Management, LLC is a commercial real estate investment management company focused on value-add real estate acquisitions in the southeastern United States. TerraCap considers thematic factors such as business formation, employment growth and population growth on a market-by-market basis, as most metros and submarkets have different economic-based industries and therefore move through their economic cycles differently. TerraCap makes moderate strategic overweighting or underweighting to markets, depending on the specific economic drivers influencing supply and demand. TerraCap intends to invest in assets so that no economic industry base will be allowed to dominate any property or the portfolio’s performance.

TerraCap has been in operation since 2008 with offices located in Estero, FL, Tampa, FL, and the Atlanta, GA metro area. TerraCap utilizes what it believes are “Institutional Best Practices” in underwriting, investment committee memorandums, quarterly business plans for each property, quarterly reports, and annual financial audits. With over 5,000,000 square feet of real estate acquired to date, TerraCap currently manages in excess of 4,000,000 square feet.

TerraCap’s value-oriented approach historically consists of purchasing properties below replacement cost with conservative leverage. This allows TerraCap to seek to capitalize on event oriented situations and other opportunities, as well as creating value and risk-adjusted returns that are positioned to outperform original targets, potentially creating both income and capital appreciation returns.

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2016, JLL had revenue of $6.8 billion and fee revenue of $5.8 billion and, on behalf of clients, managed 4.4 billion square feet, or 409 million square meters, and completed sales acquisitions and finance transactions of approximately $145 billion. At the end of the second quarter of 2017, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of nearly 80,000. As of June 30, 2017, LaSalle Investment Management has $57.6 billion of real estate under asset management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.