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One and Two Parkway Center under New Ownership

12 Sep 2014, 9:07 pm

By Balazs Szekely, Associate Editor

The Marietta complex totaling 458,861 square feet has been purchased in a direct off-market transaction by Fairlead Commercial Real Estate and equity partner Bridge Investment Group Partners, managers of the ROC Funds.

Fairlead Commercial Real Estate, LLC is an Atlanta-based privately held real estate investment and operating company with offices in Florida, Hong Kong, and Singapore. The firm is currently involved mainly in the acquisition, management and reposition of office and industrial properties in the Southeastern United States. Fairlead purchased the 458,861 square-foot class A office complex directly from an undisclosed seller and the acquisition moves Fairlead’s corporate investment fund to 35 percent deployed. The company’s Atlanta office will oversee the assets with Jeff Shaw, Jim Caswell and Stewart Thrash responsible for leasing.

Located at 1800 Parkway Place—directly off of I-75 and South Marietta Parkway at the exit ramp of the GA-120 loop—Parkway Center comprises 16 acres which includes a 5.1-acre development site reserved for a 300,000-square-foot office building or data center. One and Two Parkway Center were 54 percent leased at the time of the transaction and the new owners plan to invest approximately $4.5 million to upgrade the operating systems, common areas and tenant amenities of the two buildings. John Ward, chief investment officer of Fairlead, said the firm is also looking to acquire another $500 to $600 million in industrial and office assets over the next 18 to 24 months in the Southeastern United States and Texas.

Fairlead President Jeff Shaw is confident regarding the successful future of the office park. “One and Two Parkway Center are the only Class A suburban buildings in a Georgia Opportunity Zone [Marietta Opportunity Zone] as well as being in a HUBzone and the Global Greentech Corridor,” he said in a recent press statement.” This translates into significant financial tax incentives for new and growing companies of up to $10 a square foot in lease value,” he added.

Image source: Google Maps 

Construction Commences on Belmont Mixed-Use Development

29 Aug 2014, 3:40 pm

By Balazs Szekely, Associate Editor

Developer Halpern Enterprises broke ground Thursday on Belmont, a multi-use project going up at the intersection of Windy Hill Road and Atlanta Road in the heart of Smyrna.

The site, which already contains the LEED certified 900-plus student Smyrna Elementary School, is the former Belmont Hills Shopping Center. The 480,000-square-foot center, which opened in 1954 and was purchased by Halpern Enterprises in 1967, became functionally obsolete and was leveled two years ago to make way for the new development.

The new 48-acre mixed-use project will feature restaurants, a 47,593-square-foot neighborhood retail center by Halpern Enterprises, a 153-home single family residential subdivision and a 274-unit luxury apartment community. The single family units will be built by David Weekley Homes and Wood Partners is entrusted with the construction of the luxury apartments. Besides the housing options and the retail component with a collection of restaurants and shops, the project includes a community green space with walking path, pavilion, and pond.

Steve West, Vice President of Development at Halpern Enterprises sees a great potential in the area.

“This location has continued to improve in recent years as high-quality projects have been built throughout Smyrna, spurred on by the city’s investment in its downtown,” he said in a press release. “And now, the planned Braves development about two miles away will only add to the area’s quality of life for people to live, work and play.”

Photo credits: Halpern Enterprises

Radco Purchases Two Metro Atlanta Communities for $33.2M from Fannie Mae

22 Aug 2014, 8:56 pm

By Balazs Szekely, Associate Editor

RADCO’s founder and CEO Norman J. Radow has recently announced the $33.2 million acquisition of two metro Atlanta residential properties from Fannie Mae, totaling 553 units. The 439-unit Keeneland Farms and 114-unit Brown Ridge will soon undergo maintenance and rebranding.

Founded in 1994, the RADCO Companies is a real estate opportunistic investment specialist. Following this latest acquisition the firm’s multifamily portfolio currently includes north of 7,133 units located in Georgia, Illinois, Indiana, Oklahoma and Colorado. So far this year, RADCO has purchased nine properties including 2,264 units and requiring a capital investment of about $220 million. To date, RADCO has raised about $150 million of private equity to fund its acquisitions.

Located in Smyrna, Keeneland Farms was originally developed in 1972 on a land of 44.4 acres whilst Brown Ridge was built in three phases from 1976 to 1988 on 16 acres just one mile from the heart of downtown Newnan. Both communities have one- to three-bedroom apartments, as well as townhomes to offer.

The new owner will start with renaming the two properties. Keeneland Farms becomes Ashford Woods and Brown Ridge will change its name to Ashford at Brown Ridge in order to coincide with the company’s brand identity. The majority of RADCO’s capital improvement plan will focus on upgrading exteriors as well as unit interiors at the properties. Maintenance plans also call for replacing aging infrastructure and expanding amenity packages, which includes adding a pool to the Newnan community. RADCO plans to invest $5.8 million on renovation.

The company financed the purchase through a mixture of bridge debt provided by Freddie Mac and Hamilton State Bank, in addition to its own privately funded equity.

Photo credits: The RADCO Companies

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

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