Top 10 Office Transactions in Atlanta
- Jun 03, 2019
Investor interest in suburban office assets became significantly more pronounced in 2018. That trend has continued in 2019 and is expected to remain strong throughout year’s end. Although transaction activity was slow during the first quarter, with approximately $326 million in sales volume, the majority of assets were located in suburban submarkets, with Buckhead, Galleria and Alpharetta having attracted the most capital.
Atlanta remains one of the most desirable office markets in the country, with plenty of new properties to choose from and a substantial development pipeline. According to Yardi Matrix data, approximately 6 million square feet of office space was under construction as of March with more than 1.5 million square feet scheduled to come online by the end of the second quarter.
5. 2100 Riveredge ($45.2 million)
Transwestern bought the 264,000-square-foot building from Mainstreet Capital Partners at the beginning of the year, paying $45.2 million for the new acquisition. The sale was subject to a $23.1 million, 20-year loan via Jackson National Life Insurance Co.
The 12-story building is located at 2100 Riveredge Parkway N.W. in the Galleria submarket and was completed in 1985. The latest renovation was completed in 1999. Transwestern owns and manages several properties in the Atlanta metro area, the most recent management assignment relating to Georgia – Pacific Center in downtown Atlanta.
4. Parkside Terrace East & West ($48.1 million)
A joint venture between Ravinia Capital Group and an institutional partner are the new owners of the two-building campus at 3780 and 3820 Mansell Road in Alpharetta, Ga., previously a Granite Properties asset. The portfolio sold for $48.1 million, almost double the amount Granite Properties paid for the buildings in 2011. Following the transaction, the property became subject to a $39.2 million loan with Citizens Financial Group.
Completed between 1999 and 2001, the campus provides a total of 250,000 square feet of office space in a park-like setting close to the Big Creek Greenway trail. The West building is currently 60 percent occupied while the East building is almost fully leased. Besides the newly acquired campus, Ravinia owns two other office assets in the Atlanta area: 3600 Mansell Road in Alpharetta and One Hartsfield Centre near the Hartsfield-Jackson Atlanta International Airport.
3. Piedmont Center Fourteen ($58 million)
After more than three years of owning the 1988-built Piedmont Center, Lone Star Funds sold the asset to The Ardent Cos., one of the largest landlords in the Buckhead submarket, where the company owns nine other office properties. The sale was part of a portfolio transaction which Ardent covered via a $227 million loan held with Brookfield Asset Management.
Since the last time the property went through cosmetic upgrades was in 2013, the new owner plans to start a new renovation program in order to increase occupancy. The 1988-built was more than 85 percent leased at the time of the sale, with MagMutual, Change Healthcare, Kenzie Lane and NCC Media part of the tenant roster. The property is located at 3535 Piedmont Road N.E. and encompasses 307,000 square feet.
2. Atlanta Galleria Office Park – Galleria 100 ($97.2 million)
Piedmont Office Realty, the owner of Galleria 200 and Galleria 300 office buildings in The Galleria master-planned development, has recently completed its portfolio by acquiring Galleria 100. The company paid $97.2 million for the 18-story office building in northwest Atlanta.
The acquisition price was almost $30 million over the amount the former owners, Childress Klein and WHI Real Estate Partners, paid for the building in 2017. The 414,000-square-foot building was 91 percent leased to a mix of tenants which include Aflac, Freeman Mathis & Gary, Fresenius Medical Care and The Georgian Club. Don Childress, senior managing partner at Childress Klein, developed the building in 1981. The property provides direct access to The Battery, a mixed-use center which includes SunTrust Park, home of the Atlanta Braves, and the Coca-Cola Roxy Theater.
1. One and Three Glenlake ($227.5 million)
After owning the Glenlake Parkway campus for more than a decade, Columbia Property Trust sold the two buildings to Starwood Property Trust, an affiliate of Starwood Capital Group, for a grand total of $227.5 million. The sale was funded by a $147 million, 7-year loan with Wells Fargo Bank.
In 2016, the 706,000-square-foot campus in Atlanta’s Central Perimeter submarket went through a recent renovation, which resulted in the full occupancy of both buildings. Three Glenlake became the new headquarters of Arby’s Reastaurant Group Inc. while the other asset is home to Cotiviti and offices for Oracle, Comcast and SPACES, among other companies. Completed in 2002 and acquired two year later, One Glenlake features 14 stories and includes an on-site conference center, renovated lobby, fitness center and café. Three Glenlake was completed in 2008 and was purchased the same year.
The list was compiled based on Yardi Matrix data and highlights the top 10 office sales in Atlanta year-to-date through May.