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Pollack Shores Pushes Deeper into Suburbs

Atlanta Developer Buys Cherokee County Site for 282 Apts.
May 1, 2018
Pollack Shores, which last year hit investment home runs in Midtown and Buckhead, is looking to do the same 35 miles north of the heart of Atlanta.

The multifamily developer and investor said Tuesday it closed on a site at Holly Springs Pky. and Main St. in Holly Springs, GA. Pollack Shores would not disclose the seller, but the land is home to Holly Park, a mobile home park that Holly Park, LLC shuttered in March as part of the planned redevelopment.

Pollack Shores plans to replace the mobile home park with a 282-unit luxury apartment community. The development fits in with a suburban push that is a growing piece of the company's growth strategy that helped Pollack Shores set a new revenue record in 2017.

For the past several years, multifamily developers have ridden the wave of intown development, following millennials and empty-nesters who wanted to live in the city without committing to a mortgage. Higher demand led to increased rents and a wave of new apartment towers popping up, especially in Midtown.

As the intown apartment construction approached a frothy state, some developers, emboldened by the success North American Properties had with two multifamily communities at Avalon in Avalon, returned to the suburbs. Simultaneously, ardent opposition to apartments in Atlanta's northern suburbs softened among jittery residents who feared apartments would lower their property values.

In Holly Springs, Pollack Shores' new apartments will have a design that has similarities to single-family homes. Poole & Poole Architecture designed the apartment homes with box gable roofs. The one-, two- and three-bedroom units will range from 700 to 1,450 square feet.

Pollack Shores is poised to leverage the new suburban development trend. The developer expects to break ground at the as-of-yet-unnamed apartment community this month.

"Our leadership team is highly focused on the suburban investment shift occurring within our industry," Pollack Shores CEO Steven Shores said. "By identifying and securing prime growth locations such as the one in Holly Springs, we will be able to maximize high-yield returns for our partners."

Pollack Shores' equity partner in the Holly Springs development is Chicago-based NXT Capital. A middle-market lender, NXT has provided debt or equity for several projects across the Southeast and Texas. In October 2017, NXT provided a $30 million loan to refinance Ardmore & 28th, an apartment community near Piedmont Hospital.

As for Pollack Shores, it plans to continue its suburban growth strategy. "There's a clear demand for luxury multifamily housing in these suburban markets, and we will continue to seek out similar opportunities that strengthen our portfolio and build long-term value."

Tony Wilbert, Atlanta Market Reporter  CoStar Group   
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