I have been presented with an opportunity to invest in a syndication that is buying a 151 unit apartment property known as Park Canyon Apartments, located at 1284 Park Canyon Dr, Dalton, GA 3072057.
I am doing my own due diligence but would also like feedback from others in the local area as to what they think of the location, the property and prospects for continued growth in the area and for increasing rents.
Specifically, I would appreciate your views on:
- Whether the neighborhood should be considered A class?
- Whether the property should be considered B class?
- How much new construction is planned for the area over the next few years?
- How high multi-res vacancies in the area got in the last great recession?
- Cap rates for recent sales of 100+ units in the local area.
Thanks in advance for your input.
Hi David, I live/work in the Atlanta metro market, so I'll give you my opinion for this area:
1. NOT Class A, probably middle B at best
2. Not sure about new construction, I doubt not very much. This is a tertiary market, very north of metro Atlanta. Not an area for consistent rent appreciation or development.
3. No idea about vacancies in last recession, my guess would be low since in this tertiary market, rents are more affordable.
4. Again, no idea on caps in this area, but definitely higher than metro Atlanta, I would venture north of 7.5/8 easily.
I used to live 20 minutes south of Dalton. I can't comment on the financials, because I am new to all this, but I can tell you about the area.
It is heavily dependent on the carpet industry. Shaw Industries is one of, if not the, biggest employer in the area.
I have friends and family that still live in the area, and you are looking at $10-16 per hour pay scale.
I have a niece living in the apartments due south of this address and it is owned by Dalton College so it's all students.
Sorry I couldn't help more.
David, just wondering if you ended up investing in Dalton. If so, how did it turn out? Would you recommend investing in the area? I am looking at a MF as well in the area.