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ACP Picks Up TownPark Ravine Office Park with $41.1M Loan

12 Aug 2014, 4:01 pm

By Balazs Szekely, Associate Editor

America’s Capital Partners has purchased TownPark Ravine, a three-building, 367,090-square-foot office park near Kennesaw.

America’s Capital Partners is a fully integrated, private commercial real estate investment company based in Coral Gables, Florida, involved in the development of several Florida projects including high-rise residential, retail, industrial and self-storage facilities. Additionally, the firm has managed and leased over 20 million square feet of office space along the east coast with an aggregate asset value of over $5 billion.

Cushman & Wakefield’s Capital Markets Group represented the seller, Taylor & Mathis Inc. Executive Directors David Meline and Stewart Calhoun, Director Samir Idris and Brokerage Services Director Casey Masters spoke for the real estate company in the transaction. Cushman & Wakefield also arranged acquisition financing for the purchaser through its Equity, Debt and Structured Finance team. Mike Ryan, Brian Linnihan, Jeff Walker and Larry Johnson arranged the $41,137,500 the long-term, fixed-rate loan that is being provided by GE Capital Corp.

The purchase price was not disclosed. TownPark Ravine is part of a 243-acre master-planned development northeast of Marietta, between Interstate75 and Interstate 575. The office park is adjacent to The Village at TownPark and located one mile north of Town Center at Cobb.

Built in three phases from 1999 to 20006, the acquired assets include two 6-story buildings of over 133,000 square feet and a 4-story building with 100,770 square feet of space. Mike Ryan considers the property a profitable office complex due to its location, the “stable and diverse tenant mix” and its stable cash flow.

“The stable rent roll and strong occupancy allowed the buyer to maximize proceeds and the interest-only period,” he adds, according to a recent written announcement released by Cushman & Wakefield.

Photo credits: Taylor & Mathis Inc.

KBS Subsidiary Eyes Atlantic Station Landmark Tower

1 Aug 2014, 3:48 pm

By Balazs Szekely, Associate Editor

171 17th Street in Atlantic Station will change hands soon, as a company affiliated with KBS Capital Markets Group’s Real Estate Investment Trust III has recently entered into an agreement to acquire the office building for the price of $132.5 million or $260 per square foot.

Developed by AIG Global Real Estate, the 22-story Class A office tower was the first skyscraper in Atlanta west of the Downtown Connector and north of 14th Street. Completed in 2004, the LEED Silver-Core and Shell certified high-rise was the first of its kind globally, and the first of any level in Georgia to receive the distinction. It was initially called the Southtrust Tower and was originally intended to be the Atlanta headquarters for SouthTrust. Soon after 171 17th Street’s inauguration, the banking giant merged with Wachovia, which was bought by Wells Fargo in 2009. As part of the brand overhaul, the San Francisco-based bank changed the signs on the facades and the building is now often referred to as the Wells Fargo Building.

KBS intends to fund the acquisition of the asset with proceeds from a mortgage loan from an unaffiliated lender and proceeds from its offering. It is currently negotiating the terms of the mortgage loan; thus, whether or not the transaction will be closed is yet uncertain.

The 509,237 square foot property is located on approximately 0.7 acres of land and it is currently 89 percent leased to 11 tenants. The current aggregate annual effective base rent for the building’s tenants is around $10.5 million and the current weighted-average remaining lease term for them is approximately 6.6 years, according to a recent written announcement.

Image source: Google Maps

Lawrenceville Value-Added Community Sold to Local Investor

18 Jul 2014, 5:29 pm

By Balazs Szekely, Associate Editor

The 98-unit Ashford Way multifamily property at 370 Hurricane Shoals Road changed hands for $5 million, or approximately $51,000 per unit. KENCO Apartment Communities, a multifamily investor with a 50-year background in Atlanta purchased the property from The RADCO Companies. According to a recent announcement made by RADCO’s founder and CEO Norman J. Radow, Atlanta Retailers Association brokered the transaction.

Also based in Atlanta, RADCO is a real estate opportunity development company with a 20-year history on the residential markets of Georgia as well as Illinois, Indiana, Oklahoma and Colorado. The company is focused on redevelopments and its value-add strategy has produced $130 million in private equity over the years to fund its transactions. RADCO’s portfolio includes around 6,300 multifamily units in the aforementioned states with an additional 860 units under contract.

The company purchased Ashford Way out of receivership in December 2012 and paid $29,000 per unit. The community was 71 percent occupied at that time. Built in 1987 in the heart of Gwinnett County, the community has one- and two-bedroom units averaging 752 square feet.

As a result of a $1 million value-added capital improvement, KENCO took ownership of the rebranded property with renovated exteriors, upgraded units, an expanded amenity package and 97 percent occupancy. The average rents have also raised more than $75 per unit during RADCO ownership.

Photo credits: The RADCO Companies

MetLife Brings 3 MSF Industrial Park to Metro Atlanta

11 Jul 2014, 7:08 pm

By Balazs Szekely, Associate Editor

A new large-scale Class A industrial distribution park called Lambert Farms Distribution Center is coming to Henry County, bringing about 1,200 full-time construction jobs to the area. MetLife, Inc.’s joint venture with Newport Beach, Calif.-based Panattoni Development Company will carry out the project. MetLife is majority partner and the privately held California developer will be the managing member.

MetLife is a global provider of insurance, annuities and employee benefit programs. Through its subsidiaries and affiliates, the company holds market positions in the United States, Japan, Latin America, Asia, Europe, the Middle East and Africa.
With plans to be built on a 183 acre King Mill Road site, Lambert Farms Distribution Center will have 3 million square feet of space to offer and will be able to accommodate up to two 1.5 million square-foot distribution facilities. The location is about 15 miles south of the Hartsfield-Jackson International Airport and 25 miles from the Perimeter. According to a written announcement by MetLife, the development costs will total around $110 million. The plans include LEED certified buildings, 36-foot clear heights and up to 240-foot truck court depths.

In addition to the warehouse project on King Mill Road, MetLife and Panattoni are laying the groundwork for eight other facilities. Totaling nearly 6 million square feet on 356 acres, the industrial facilities will be located in Seattle, Chicago, the Inland Empire market of California and in the Northeast Atlanta submarket.

Lambert Farms Distribution Center is scheduled to complete in about three years.

Photo credits: MetLife, Inc.


STORE Capital Acquired Advanced Control Systems Building

4 Jul 2014, 5:46 pm

By Balazs Szekely, Associate Editor

STORE Capital, an Institutional REIT, bought Advanced Control Systems Building a 49,436 square foot office/warehouse facility located in Norcross, enlisting the services of Stan Johnson Company. The transaction was worth $4.12 million and the property is leased back to Advanced Control Systems, Inc.

Stan Johnson Company is a real estate brokerage and advisory firm with a background of 28 years and over $16 billion in single-tenant, net lease transactions nationwide. The company offers acquisition, disposition, pricing advisory and financing. Their range of clients includes office, industrial, medical and retail developers, institutional REITs, pension funds, corporations, and high-net worth individuals.

Advanced Control Systems designs and manufactures automation systems, provides smart grid solutions for electric utilities in the United States and internationally. The firm operates as an independent portfolio company of the North American T&D Group. NATDG, which is majority owned by Falfurrias Capital Partners, a private equity investment firm based in Charlotte, NC, acquired the company earlier in March from the Efacec Group.

The company uses the Advanced Control Systems Building as a multi-purpose office, assembly, and warehouse space. The property was sold as a sale leaseback under a long term lease. Britton Burdette and Mollie Alteri of Stan Johnson Company’s Atlanta office spoke for both the buyer and the seller – Falfurrias Capital Partners – in the transaction.

Photo credits: Stan Johnson Company


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