Element 41 has consistently collected above 93% of rent through the pandemic and rents have continued to grow. In fact, the last ten leases have averaged $1,094 overall and $1.29 PSF, 9% higher than in-place rents on a per square foot basis.
Element 41 is advantageously located right off of Hwy. 41 (37,600+ vehicles per day), along with direct access to I-75 (321,000+ vehicles per day). Just a 10 minute drive from the Cumberland Galleria submarket (80,000+ jobs), Element 41 enjoys direct access to one of Atlanta’s fastest growing job centers.
Element 41 provides a rare value-add opportunity with positive economies of scale in a coveted location. In-place premiums on the current modest interior updates range between $100-$140 per unit across 101 units (20% of the property), illustrating the demand in the submarket for a more complete renovation package. 80% of Element 41’s 494 units consist of black appliances and laminate countertops—creating an unparalleled value add opportunity. Through the implementation of more luxury features such as hard-surface countertops, stainless steel appliances, modern white cabinetry, and smart home features—Element 41 is poised to garner $200+ premiums translating to a rental income increase of more than $1.1M/year.
The outstanding growth of the area and underlying fundamentals remain sound and relevant. However, the Pro Forma reflects the impacts to growth brought about by the COVID-19 pandemic and ownership has appropriately adjusted its pricing expectations to reflect these conditions.