Red Oak Capital Holdings, LLC has closed an $8.65-million bridge loan for the acquisition and renovation of Garden Courts Apartments, an 86-unit garden-style multifamily community in the growing Atlanta submarket of East Point. The transaction was originated by Red Oak Regional Manager David Christensen, underwritten by Thomas Gorski, and administered by James Myatt. Gist Group LLC’s Arden Gist arranged the financing on behalf of borrower Miller Capital Properties, an Atlanta-based multifamily investment firm.

The loan will fund the property’s acquisition and approximately $1.3 million in capital improvements, with the aim of driving rental rate increases. With a current market rent deficiency of approximately 19.5%, the business plan is supported by both the submarket’s historical average occupancy of 94.8% and strong rent growth, which has averaged 6.6% annually over the past five years in the broader Atlanta-Sandy Springs-Roswell market.

Located at 4060 Janice Drive, Garden Courts Apartments consists of six, two-story buildings, situated on 5.5 acres. Built in 1983, the property includes 24 one-bedroom, 60 two-bedroom, and one three-bedroom apartment units, as well as a single-family rental home and leasing office. The sponsor’s capital improvement plan calls for interior upgrades including new appliances, finishes, and fixtures, as well as exterior work addressing HVAC, roofing, siding, landscaping, and asphalt repairs, among other common area enhancements. Upon completion of renovations and stabilization, the sponsor plans to hold the property long term and refinance into permanent agency debt.