California Firm Shells Out Nearly $35 Million for Walton Crossing in Austell

Walton Crossing (CoStar)

A California firm that targets value-add real estate for investment has snapped up an affordable housing complex in suburban Atlanta as it looks to grow its holdings in the sector.

Kairos Investment Management Co. paid $34.6 million for Walton Crossing, a 238-unit property located in Austell, a suburb about 17 miles northwest of Atlanta. Kairos bought the property from affordable housing developer Walton Communities, with the deal coming out to more than $145,000 per unit.

Kairos founder and CEO Carl Chang said in a release the property fit into its investment strategy as it targets stable cash-flowing properties in strong secondary markets that offer low vacancy rates, above average population growth and proximity to major employers.

That includes high-quality affordable housing, a sector in which Chang said demand is outpacing available supply, “especially in markets that attract renters due to job availability and lifestyle.”

Built in 1990, Walton Crossing features a mix of one- to three-bedroom units, with the majority of apartments rent restricted to 60% of the area’s median income. Community amenities include a pool, fitness center, playground, tennis and sport court, gazebo and an adventure center with a kitchen, classrooms and community space.

As part of its environmental, social and governance, or ESG, strategy, Kairos said it plans to invest in sustainability efforts and social programs, as well as carry out minor interior upgrades.

The property last traded in 2005, when Atlanta’s Walton Communities bought it for a little more than $13.9 million, or about $58,000 per unit, according to CoStat data.

Kairos has managed investments in real estate, nationwide and across multiple asset classes valued at over $3.2 billion, including more than 18 million square feet and over 20,000 multifamily units. Kairos secured a loan through JLL Real Estate Capital for the Walton Crossing purchase.