Corporate Overview
2019 Value-Driven. Results Oriented.
TABLE OF CONTENTS Profile
3
Attributes
4
Vision : Strategy : Mission
5
Investment Strategy
6
Investment Approach
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Leadership
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Milestone Project Timeline
14
Comprehensive Project List
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Development Portfolio
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PROFILE HISTORY
Founded in 1993 and headquartered in Atlanta, Georgia, Southeast Capital Companies is a recognized leader in the development of multifamily housing, residential subdivisions, mixed-use projects, and condominiums. » 26-year history of success navigating varied and often volatile real estate market cycles » Development portfolio in excess of $1.9 billion in assets located throughout the Southeastern United States » Prudentandresourcefulinvestmentanddevelopmentstrategythatcontinuestoredefinetheresidentiallandscape and consistently re-imagines the live, work, play paradigm CULTURE
SEC is investor centric » Provides quality and timely reporting that enables partners, investors and stakeholders to procure information on a project-by-project basis, as well as on a portfolio-wide basis » Committed to vigilant and preemptive management throughout a project's lifecycle » Pro-actively identifies challenges and endeavors to deliver projects on time and within budget
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ATTRIBUTES SEC's experienced team, operational expertise, impeccable reputation,
COMPANY HIGHLIGHTS and
unwavering commitment to its partners and investors differentiates the Company from its peers. » FISCAL RESPONSIBILITY •
Proven track record of sound investment judgment and discipline through several market cycles
•
Investor centric philosophy has resulted in attractive risk-adjusted returns
•
Well-establishedrelationships with leading financial institutions, banks and private institutional funding sources
» LEADERSHIP • Founder Jay T. Clark and the senior leadership team provide unparalleled market knowledge and bring an array of real estate expertise comprising acquisition, finance, development, construction, management and engineering
$1.9 B
167
Portfolio Value
Years of Combined Experience
35
4,203
Projects
Multifamily Apartment units
1,300
408
Single Family Residential Units
Townhomes
868
72,900
Condominiums
Square Feet of Retail/Office
» PROCESS •
Endeavor to simplify building process and align economic, social, and cultural goals
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Vetted underwriting, design, construction, and operational strategy
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Site selection based on knowledge of off-market opportunities that provide niche value creation
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Hands-on approach throughout the design and development cycles
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Meticulous operating analysis and thorough preventative maintenance
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Comprehensive asset exit assessment
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VISION
STRATEGY
SEC is laser focused on core Southeastern markets and its expertise in
SEC will continue to grow its portfolio through select development and
multifamily and residential development and investment. The Company’s
investment in the Company’s areas of expertise. As an agile organization,
success is directly attributed to its patient and proven value-oriented
SEC will benefit from market shifts by adjusting its product offerings and
development and investment strategy. Leadership’s steadfast concentration
introducing new products within the multifamily and residential sectors. SEC
creates a nimble environment empowering SEC to quickly recognize and
will employ its strong relationships with financial institutions and continue to
pursue an opportunity when it arises. Fueled by powerful relationships with
foster its relationships with public entities. SEC will find opportunity and
prominent financing and banking institutions, SEC strives to offer its
profitability where others see obstacles.
partners and investors consistent and exceptional return on investment.
MISSION SEC’s primary mission is to serve investors, constituents, and the community. INGENUITY AT EVERY STEP: Site Selection → Design → Execution → Operations → Disposition INTEGRITY IN EVERY RELATIONSHIP: Customer → Community → Partner → Investor QUALITY OF EVERY COMPONENT: People → Product → Place → Price → Service → Management
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INVESTMENT STRATEGY MULTIFAMILY – OPPORTUNISTIC
MULTIFAMILY – VALUE ADD
SEC’s commitment to deep-seated relationships, market expertise, and
On an asset-by-asset basis, SEC will look to become a high-quality investor
operation excellence affords ongoing growth opportunities and potential high
and operator of value-add multifamily assets.
yields, regardless of evolving market conditions. INVESTMENT CRITERIA: INVESTMENT CRITERIA: » Primary and secondary markets throughout Georgia, North Carolina, South Carolina, Tennessee, and Alabama » Well-located off-market properties in strong growth areas, or in the path of growth, that exhibit attractive demographic, employment, and lifestyle attributes
» Primary and secondary markets throughout Georgia, North Carolina, South Carolina, Tennessee, and Alabama » Class A and B properties (10+ years old) located in supply-constrained growth markets with barriers to entry for new multifamily development » Potential value-enhancement opportunities through lease-up, unit renovation, operational efficiencies, etc
» Garden-style, low-density, surface-parked sites
» Minimum transaction size of $25 million
» Non-A+, infill, surfaced-parked sites
» Target rental rates that are competitive to other housing options and in alignment with wages in the various submarkets
» Minimum property size of 250 units » Rental payment price point that complements an area’s medium income level » Market-rate, active-adult, and workforce housing property types » Sites with unique features or the potential to provide distinctive amenities ALTERNATIVE RENTAL PRODUCTS: » On a project-by-project basis, SEC will consider infill and suburban sites with the potential for differentiated rental products to include:
SEC endeavors to simplify the building process and align economic, social, and cultural goals.
• Townhouses (two story) • Micro-Houses (detached, 1,200 sq. ft. to 1,600 sf)
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INVESTMENT STRATEGY SINGLE-FAMILY & TOWNHOUSES
SEC takes a holistic approach when evaluating a potential project. While many developers may “tieup” land without a clear vision for the property, SEC's thorough underwriting approach sets up a project for a greater chance of success by evaluating a project's physical, market, financial, and political feasibility, prior to going under contract, in order to determine the product type(s) that will best succeed on the property, based on the overall area supply/demand imbalance.
SEC’s secondary strategy involves attached or detached for-sale housing. Given the Company’s history and expertise in the residential market, SEC will continue to explore potential single-family and townhouse principal ground-up development opportunities, on a project-by-project basis, in the Atlanta MSA.
INVESTMENT CRITERIA: » Suburban and infill locations » Under-supplied inventory metrics • Upper 20% of school ratings • Low crime rate statistics » Monthly mortgage payment that is affordable for middle to upper-middle household incomes • Minimum project size of 40 units • Micro-Houses (detached, 1,200 sq. ft. to 1,600 sf)
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INVESTMENT APPROACH » Target a steady pipeline of six new acquisitions per year, comprised primarily of multifamily projects with the balance being a combination of single family, townhouse, and Micro-House projects » Actively review the market supply-demand product requirements in the Company’s geographical footprint and adjust the acquisition portfolio accordingly » Continuously re-evaluate potential sites which traditional developers may be less inclined to look at due to lack of market or product knowledge, or perceived risk » Continue to exhibit patience and target off-market properties for acquisition that conform to the Company’s proposed underwriting criteria and guidelines » Partner with city agencies on infill locations for higher density rental and for sale developments that achieve local housing requirements, including workforce housing » Control land-basis, development, and entitlement project costs by identifying sites that are within the path of development. Relevant examples of current SEC projects where this approach was implemented include: • Skyland Brookhaven Townhomes (for sale) •
Smyrna Grove Single-Family Subdivision (for sale)
•
Avondale Estates Single-Family Subdivision (for sale)
» Employ a disposition strategy for all stabilized projects in the portfolio, with the goal of maximizing profits to all project stakeholders and prioritizing the Company’s investment and development partners
PRIMARY MARKETS SECONDARY MARKETS
SEC will find opportunity and profitability where others see obstacles.
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LEADERSHIP SEC’s senior leadership team is adept at identifying and executing on opportunities in all areas of multi-family and residential investment, development, and management. Each team member brings unique experiences and strengths that cumulatively create an unparalleled group of professionals with the collective ability to ensure universal coverage and continuity as a project progresses from project concept through completion. Result: SEC is able to originate, analyze, and act on potential development opportunities at the forefront of the investment cycle, and is not beholden to any one trend or investment thesis, regardless of market conditions.
Disposition
Asset & Risk Management
Acquisition
PROJECT
Construction
Underwriting
Planning Development
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LEADERSHIP
JAY T. CLARK
HUGH L. NELSON
Founder & CEO
Chief Financial Officer
Jay is Founder & CEO of SEC. Jay began his professional career in public accounting and later founded Apartment Realty Advisors (“ARA”), a real estate brokerage firm, in 1993. After successfully selling ARA, Jay focused exclusively on SEC with initial investments in multifamily.
Hugh is the Chief Financial Officer and joined SEC in 2001. He presides over all financial matters of the company, including accounting, finance, risk management, investor relations, and human resources. Hugh has in-depth accounting experience having been a CPA for 20 years in several major industries including non-profit, public accounting, and real estate.
Jay is highly regarded as an expert in the multifamily and residential marketplace and has been the General Partner on over $1 billion of residential acquisitions and developments. Under Jay’s direction, SEC has received multiple project honors and awards, including Community of the Year (Smyrna Grove) and 50+ Community of the Year (Soleil Laurel Canyon), both from the Greater Atlanta Home Builders Association. Jay received a bachelor’s degree in Business Administration from the University of Tennessee at Chattanooga. Jay is a licensed Georgia real estate broker and a previous Certified Public Accountant. He is an active member of the National Multi-Family Housing Council and Urban Land Institute.
Southeast Capital Companies
Hugh is responsible for project-level accounting and asset management reporting for the Company’s real estate portfolio, which is comprised of complex and diverse ownership and partnership structures. Hugh is also actively involved with the evaluation, debt and equity structuring, and due diligence of potential real estate development pursuits. Hugh earned a B.S with a double major in Accounting and Finance from Florida State University. He was a Certified Public Accountant from 1998 through 2017. Hugh’s current and/or former memberships include The Georgia Society of Certified Public Accountants, Inc. and The American Institute of Certified Public Accountants.
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LEADERSHIP
KIMBALL “KIM” ROBINSON
JOHN S. HUCKABY
Vice President - Planning & Development Services
Vice President - Operations
Kim joined SEC in 2013 with the responsibility of shepherding multi-family and residential development projects from acquisition through stabilization. Throughout the entirety of his career, Kim has successfully delivered over 10,000 rental and for sale multi-family units, some of which were part of complex, mixeduse deals, valued in excess of $750MM. Kim’s 30 years of relevant architectural and senior project management experience provide unique insights into the predevelopment, planning, development, and construction processes to preemptively assess and mitigate potential project-related risks.
John joined SEC in 2016 and is Vice President of Operations. He has 28 years of leadership experience in the investment, development, sales, and operations of multifamily and residential real estate. At SEC John is responsible for construction services, marketing, sales, and asset management for ground-up and completed multi-family and residential properties. Throughout his career John has closed more than $1 billion in transactions including $450 million in multifamily transactions, with many of the top REITS and private capital funds, as well as aggregate residential condominium sales in excess of $650 million.
Prior to joining SEC, Kim was the founding Principal of CnF Holdings, a real estate acquisitions and redevelopment group targeting multi-family and offcampus student housing rental assets located throughout Atlanta, Georgia. Kim earned a B.A. in History, with a minor in English, from the University of North Carolina in Chapel Hill, and a Masters of Architecture from the University of Pennsylvania. He is an active member of the American Institute of Architects and Urban Land Institute.
Prior to SEC, John held a senior leadership role with ST Residential, the consortium formed by Starwood Capital and the FDIC. John was instrumental in the launch, marketing, and liquidation of ST Residential’s Atlanta real estate portfolio, comprising approximately $500 million in residential condominium sales (1,200 units), an $89 million bulk-sale of a fractured condo, the disposition of 32,000 square feet of retail space, the sale of two entitled land parcels, and the sale of some 1,200 condominium units to individual end-users. John received a B.A. in Communication from The University of Alabama. He is a licensed real estate agent in Georgia and holds several certifications from the Institute of Real Estate Management, the National Apartment Association, and the National Manufactured Housing Association.
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LEADERSHIP
HEATH HAWKINS
TIMOTHY LAUMAKIS
Vice President - Acquisitions & Development
Vice President - Capital Markets & Development
Heath joined SEC in 2018 and is Vice President of Acquisitions & Development with a primary focus on multifamily ground-up developments. Heath has extensive experience throughout the Southeast and has been directly responsible for the acquisition and development of 7,000 multifamily units over his career. At SEC Heath is responsible for the site origination, underwriting, contract negotiations, and due diligence related to potential land acquisitions.
Tim Joined SEC in 2018 and is Vice President of Capital Markets & Development. Tim is responsible for establishing and maintaining partnerships with investors and for securing debt and equity capital for SEC’s real estate initiatives. He is also involved with development activities for the firm’s multifamily and residential projects. Over his career, Tim has been involved in relevant real estate investment and development projects and capital market transactions, totaling over $1 billion of value.
Prior to joining SEC, Heath was an Executive Developerwith Davis Development’s institutional apartment development platform where he completed garden- style multifamily projects in Atlanta, Raleigh, Durham, Charlotte, Charleston, Montgomery, Birmingham and Kansas City. Heath received a B.S. in Business Administration, with a minor in Marketing, from Georgia College and State University.
Prior to SEC, Tim was Founder and Managing Principal of Veridian Real Estate Partners where he advised on real estate development pursuits totaling $150 million. Tim previously held senior level positions with Novare Group and Regent Partners where he was responsible for the development of high-rise, mixed-use, residential condominium projects valued in excess of $400 million. As Group Vice President with SunTrust Bank, Tim managed a $500 million real estate portfolio and structured and closed more than $300 million in bank-owned property dispositions. Tim also structured over $600 million in sale-leaseback and build-to-suit finance mandates with SunTrust Bank and over $50 million in land-secured bond financings with DPFG. Tim began his real estate career as a project engineer with CH2M Hill. Tim holds a B.S. (Magna Cum Laude with honors) and M.S. in Civil Engineering from Drexel University and an MBA in Finance from the Fuqua School of Business at Duke University. He is a registered Professional Engineer, a licensed real estate broker in Georgia and North Carolina, and an active member of the Urban Land Institute.
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MILESTONE PROJECT TIMELINE : COMPLETED
THE GLEN Apartments SOLD
WESLEY VILLAGE Apartments SOLD
HERITAGE PLACE Condominiums SOLD OUT
THE BORGHESE Mixed Use / Condos SOLD OUT
THE PRESERVE AT BRENTWOOD Apartments SOLD
CAVALIER CREEKSIDE WHISPERWOOD Apartments Apartments SOLD SOLD
1996 1998 2002 2004 FRANKLIN ROAD Apartments SOLD
NORTH FULTON OFFICE PORTFOLIO SOLD OUT
MUSEUM TOWER at Centennial Hill Condo / Land SOLD OUT
660 @ OLD 4TH WARD APARTMENTS SOLD
2007 THE MANHATTAN Condominiums SOLD OUT
BRICKSTONE BROOKWOOD HEIGHTS PLACE Townhomes Residential / Retail SOLD SOLD OUT
2011
THE GRAMERCY TOWNHOMES SOLD OUT
2013
2006
THE STRAFORD THE PARK BLOCK LOFTS Apartments AT ASHFORD Rental Apartments Condo Conversion & Condos SOLD SOLD SOLD
ANSLEY PARKSIDE TOWNHOMES SOLD OUT
2014
THE LAKES AT VININGS
WOODSTOCK DOWNTOWN
THE CREEK AT ARTHUR HILLS
Apartments SOLD
Condo / Retail SOLD OUT
Single Family Homes SOLD OUT
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2005
THE GARDEN AT LAKE SPIVEY Rental 55+ SOLD
VIRGINIA PLACE TOWNHOMES SOLD OUT
2017
LAVISTA CROSSING Apartments SOLD
GREEN PARK APARTMENTS SOLD
2018
JUNIPER & 5TH Condo Development SOLD
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MILESTONE PROJECT TIMELINE : CURRENTLY ACTIVE
NORTH & LINE Apartments
2018
Southeast Capital Companies
SMYRNA GROVE Subdivision
THE MILL Office
2019
SOLEIL AT LAUREL CANYON
SKYLAND BROOKHAVEN
Subdivision
Townhomes
2020 CHASTAIN EAST
AVONDALE ESTATES
Subdivision
Subdivision
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COMPREHENSIVE PROJECT LIST Year Completed
Location
The Glen Apartments
Atlanta, GA
260 Units
1994
1996
Wesley Village Apartments
Charlotte, NC
228 Units
1994
1996
Franklin Road Apartments
Atlanta, GA
360 Units
1994
1996
North Fulton Office Portfolio
Atlanta, GA
34,000 sf
1995
1996
The Ponce Condominiums
Atlanta, GA
54 Units
1995
1997
Heritage Place Condominiums
Atlanta, GA
89 Units
1996
1998
The Borghese Condominiums
Atlanta, GA
57 Units
2000
2002
Brickstone Heights Townhomes
Atlanta, GA
57 Units
1999
2002
Brookwood Place Residential
Atlanta, GA
138 Units
1999
2002
The Preserve at Brentwood
Nashville, TN
360 Units
2002
2004
The Stratford Apartments
Cary, NC
247 Units
2003
2005
Cavalier Creekside Apartments
Lithonia, GA
280 Units
2002
2005
Park at Ashford Condo Conversion
Atlanta, GA
180 Units
2003
2005
Whisperwood Apartments
Atlanta, GA
260 Units
2003
2005
Block Lofts Apartments & Condos
Atlanta, GA
313 Units
2003
2006
The Garden at Lake Spivey
Jonesboro, GA
200 Units
2003
2006
LaVista Crossing Apartments
Atlanta, GA
167 Units
2004
2006
Museum Tower Condos & Land
Atlanta, GA
169 Units & 2.02 Acres
2000
2007
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Size
Year Acquired
Project
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COMPREHENSIVE PROJECT LIST (CONT.) Year Acquired
Location
The Lakes at Vinings
Atlanta, GA
440 Units
2003
2007
The Manhattan Condominiums
Dunwoody, GA
222 Units
2004
2007
660 at Old 4th Ward Apartments
Atlanta, GA
301 Units
2008
2011
The Gramercy Townhomes
Dunwoody, GA
65 Units & 4.5 Acres
2005
2011
Woodstock Downtown Condominiums and Retail
Woodstock, GA
58 Units & 8,900 sq. ft. of Retail
2008
2013
Ansley Parkside Townhomes
Atlanta, GA
41 THs
2011
2014
The Creek at Arthur Hills Subdivision
Acworth, GA
135 SF Homes
2010
2014
Virginia Place Townhomes
Atlanta, GA
23 THs
2014
2017
Juniper & 5th Condominiums
Atlanta, GA
150 Units
2015
2017
Green Park Apartments
Atlanta, Ga
310 Units
2014
2018
North & Line Apartments
Atlanta, GA
228 Units
2016
*2018
Smyrna Grove Subdivision
Smyna, GA
194 SF Homes
2014
*2019
The Mill Office
Atlanta, GA
30,000 sf
2016
*2019
Soleil at Laurel Canyon Subdivision
Canton, GA
939 SF Homes
2008
*2020
Skyland Brookhaven Townhomes
Brookhaven, GA
167 THs
2014
*2020
Chastain East Subdivision
Atlanta, GA
32 SF Homes
2015
*2020
Avondale Estates Subdivision
Avondale, GA
55 SF Homes
2016
*2020
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Size
Year Completed
Project
*Estimated completion year. Assets under construction.
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DEVELOPMENT PORTFOLIO
NORTH&LINE Atlanta, GA
» Lease-Up – delivered July 2018 » A 3.3-acre mid-rise apartment complex including 228 units and 4500 sq. ft. of retail space Prominently situated on Atlanta’s BeltLine and near Ponce City Market and the Historic Old Fourth Ward, North & Line is an apartment development positioned to capitalize on the local revitalization and high demand for intown housing. The five-story building is atop a three-level parking deck with amenities that include an elevated pool and deck overlooking the City’s skyline, a 5000 sq. ft. interactive social space, and a full fitness center.
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DEVELOPMENT PORTFOLIO
GREEN PARK Northlake, Atlanta, GA
» Multi-family Property – Sold February 2018 » 310 units consisting of both townhomes and single level flats In 2014, SEC recognized the opportunity of redeveloping an industrial site in the Northlake sub-market into much needed rental housing. Acquiring the parcel at a relatively low non-competitive basis, SEC was able to create a desirable community. Centered around its own park, the community includes homes ranging from 640 sq. ft. to 1607 sq. ft. Additional amenities include a pool, an activity center, and a fitness center, as well as grilling stations and a dog care area. Located at the intersection of LaVista and Weems Roads, Green Park is accessible to area shopping and dining, as well as I-85 and I-285.
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DEVELOPMENT PORTFOLIO
JUNIPER & 5TH Midtown, Atlanta, GA
» Apartment/Condominium Land Development – Sold December 2017 » Mid-level, six story building planned for 150 units In the spring of 2015, SEC purchased Juniper & 5th, a site located in the heart of Midtown with frontages on Juniper, 4th and 5th streets. Planned as a mid-rise, six-level condominium community with 150 units, each averaging 1189 sq. ft., and a podium parking deck. Amenities include congregational social space, a fitness center, a pool, and a two level roof top terrace with city views. SEC sold the shovel-ready site in 2017.
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DEVELOPMENT PORTFOLIO
SOLEIL AT LAUREL CANYON Canton, GA
» Construction and Sales – anticipated sellout 2nd Quarter 2020 » A 750-acre gated senior adult community with 939 single family homes and a 30,000+ SF Clubhouse Located less than one hour from Atlanta in the foothills of the Blueridge Mountains, Soleil at Laurel Canyon offers the highest standard of adult living with maintenance-free single family homes and an amenity-rich lifestyle that includes a 30,000 square foot clubhouse, a tennis center and a 3.5-acre fishing lake. The project was acquired in 2008 as a distressed property, and under SEC’s leadership is now recognized as one of the most successful communities of its type. In 2015 it was recognized among the Best 50 Master-Planned Communities in the U.S. by “Where to Retire Magazine.” With nearly 800 homes sold to date, Soleil at Laurel Canyon is entering its final stage of development.
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DEVELOPMENT PORTFOLIO
CHASTAIN EAST North Buckhead, Atlanta, GA
» Construction and Sales – anticipated sellout 2nd Quarter 2020 » An 8.4 Acre assemblage consisting of 32 luxury family homes priced from $1.15 million Nestled in the upscale, executive community surrounding Chastain Park, these luxury homes offer walkability to the Park, restaurants, and shopping. The community is strategically located in one of the City’s best school districts and is central to area private schools. The assemblage required the negotiation of 15 single family homes and two vacant lots, which nearly doubled the lot density of the pre-existing use.
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DEVELOPMENT PORTFOLIO
SMYRNA GROVE Smyrna, GA
» Construction and Sales – anticipated sellout 2nd quarter of 2019 » 48-acre community comprised of 194 single family Craftsman-style homes Centered around a picturesque lake, this large-scale community is ideally situated near the burgeoning Town Center of Smyrna and offers easy access to I-75 and I-285. When construction began in 2014, Smyrna Grove was the first residential community developed in Smyrna in more than six years. Its pastoral, wooded setting coupled with its desirable location, bounded by Windy Hill and Old Concord Roads, are making this a favorite for young families and empty nesters.
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DEVELOPMENT PORTFOLIO
SKYLAND BROOKHAVEN Brookhaven, GA
» Construction and Sales – anticipated sellout 4th Quarter 2020 » 167 Townhome development » Collaboration between SEC and Home South Communities Located in the City of Brookhaven, recognized for its gentrified urban lifestyle and centric location, this townhome community offers residents easy access to dining, entertainment, shopping, public parks, and schools. Just minutes from Buckhead, Midtown, and I-85, Skyland Brookhaven is attractive to Millennials, young families, and empty nesters.
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Southeast Capital Companies, LLC. 2849 Paces Ferry Road · Suite 625 · Atlanta, Georgia 30339 Phone: 404.504.0500 seccompanies.com