Chestnut Lane Apartments
For Sale
$7,500,000
82-A Berry Ave, Newnan, GA 30263
Apartment complex in growing Newnan, GA transitioning to market rates.
Property Size42,649 SF
Days on Market131
Property Features for 82-A Berry Ave
General Information
Standard status
Active
Size
42,649 SF
Property subtype
Multifamily
Amenities
Fully stabilized, recently updated to market rents
High occupancy, now offering market rate rents from affordable
Well located in downtown Newnan, GA
Newnan population growth projected to increase 2.3% in next 4 years
Very small amount of apartment units under construction or set to deliver in the near future
Building Details
Building Size
42,649 SF
Units
50
Listing Agency:
Atlanta Office
(678) 808-2715
Listed By:
Joe Mitchell · License #License(s): GA: 389970
(678) 808-2715
Source:
Marcusmillichap
Added: Apr 3
Changed: Aug 8
Last Checked: Jul 16 at 1:49AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Atlanta Office
Investment Insights
Based on property information with market context.
Chestnut Lane Apartments presents an acquisition opportunity in a residential neighborhood. The property has transitioned to market-rate operations following the expiration of USDA Rural Development (RD) affordability restrictions. Existing tenants receive RD-issued tenant-based vouchers to offset the increase from restricted to market rents. These vouchers are assigned to the tenant and provide a temporary income bridge as units turn over and are re-leased at market rates. Newnan, GA, an Atlanta submarket, is experiencing growth, with the population projected to increase approximately 2.3% over the next several years.
Key Highlights
- Transition to market‑rate operations offers potential for increased rental income.
- Located in Newnan, GA, a rapidly growing Atlanta submarket.
- Attractive cap rate presents a compelling acquisition opportunity.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$572,948
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
7.64%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$11,458,960
$11.5M
Cap Rate 7%
$8,184,971
$8.2M
Cap Rate 9%
$6,366,089
$6.4M
Market Conditions
NOI Build-Up for 42,649 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$1.11M $26.04/SF
− Vacancy
−$68.9K −$1.61/SF
EGI
$1.04M $24.43/SF
− OpEx
−$468.8K −$10.99/SF
NOI
$572.9K $13.43/SF
Area
Coweta County, GA
Vacancy
6.20%
Lease Rate
$26.04 /SF/Yr
Expense Ratio
45.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$11,458,960
Cap Rate 7%
$8,184,971
Cap Rate 9%
$6,366,089
Alternative Uses
Best Use
Apartment 5plus
$8.18M
$7.16M – $9.55M
NOI $572,948 @ 7.0% cap · market cap 7.64%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$11.92M
$10.43M – $13.91M
NOI $834,542 @ 7.0% cap · market cap 11.13%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
406
Businesses Nearby
Explore this area
Business Placement
Demographics for 30263, GA
60,467
Population
23,792
Households
2.5
Avg Household Size
38
Median Age
31%
College-Educated
89%
High-School Grad
198.2 sq mi
ZIP Area
305
Density / Sq Mi
$79,752
Median Household Income
$44,508
Median Earnings
$1,332
Median Rent
$278,200
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Apartment building - Apartment complex in growing Newnan, GA transitioning to market rates.
Where is this apartment building located?
The property is located at 82-A Berry Ave Newnan, GA.
What is the asking price?
The asking price for this property is $7,500,000.
What are key features of this property?
This property features: Transition to market‑rate operations offers potential for increased rental income.; Located in Newnan, GA, a rapidly growing Atlanta submarket.; Attractive cap rate presents a compelling acquisition opportunity.
