Somerset at Shiloh

Atlanta, GA

Date Acquired: December 21, 2004
Purchase Price: $43,500,000
Date Sold: September 8, 2006
Sales Price: $50,400,000
Location: Kennesaw, Georgia
Leveraged IRR: 28.6%

Somerset Partners (“SP”) purchased this Class A, 498 unit property located in suburban Atlanta as an opportunistic investment. The property, built in 2001 and formerly known as Alta Green, was an institutional quality asset but was underperforming due to “soft” market conditions and ineffective on-site/asset management. SP felt significant upside could be achieved by repositioning the asset and improving operations. SP accomplished this by implementing a capital improvement program coupled with a proactive management program. In addition, the property was renamed Somerset at Shiloh. The capital improvement program was not large in scale (less than $1M), but was effective in improving the asset’s image and curb appeal. Major items upgraded included; amenities (fitness center & clubhouse), building exteriors (new paint & color scheme), signage and landscaping. In addition, the proactive management program improved both resident retention and profile.