Air Realty Managing Partner Rod Mullice
Air Realty LP has received $13 million in financing to improve ThePad on Harvard, an upscale housing community located in College Park, Ga.
ThePad on Harvard is a 109-unit property that was originally constructed in 2016 and currently is 96 percent occupied. It encompasses eight studios, 30 one- and 71 two-bedroom units.
“This property is the first market-rate apartments built in College Park in 40 years,” Rod Mullice, Air Realty’s managing partner, told MHN. “This is the first phase of a three-phase development and this is a validation of the initial business plan that a Class A property in this submarket could be financially successful.”
The financing consisted of a 10-year, interest-only, full-term loan from Deutsche Bank, and the money will be earmarked for new amenities around the property.
“This financing allows the property to operate with a level of financial certainty for the next 10 years,” Mullice said. “It allows us to add some amenities, including work around the pool, and help creates a stable, sustainable financial environment for the property.”
The money also was used to repay the original construction loan from Atlantic Capital Bank and offered a distribution of 28 percent of its limited partners’ contributed capital.
“The realization of this vision has been a very gratifying experience,” Mullice said. “I knew from the beginning the economy of the Aerotropolis Atlanta region was perfect for this type of development, and the way it addressed the increasing demand for transportation options made this project a sure-fire winner.”
ThePad on Harvard sits just 400 feet from the College Park MARTA Station, and offers excellent access to alternative transportation as it’s just minutes from Hartsfield Jackson Atlanta International Airport, downtown Atlanta and popular destinations beyond. It’s also close to Interstate 85.
“Air Realty is a transit-oriented development firm,” Mullice said. “Our strategy is to develop within three transit stops from 50,000 jobs and our development zone is roughly a half mile from a transit stop.”
Greg Krafcik of Walker Dunlop arranged the financing, while Aasia Mustakeem, Andrew Patterson and Benjamin Brooks with Smith Gambrell and Russell handled legal counsel for the closing.