ATLANTA—Shadowood Office Park in the Cumberland-Galleria submarket of Atlanta has traded hands. Atlanta Property Group, a locally based real estate investment firm, acquired the office asset.
Located at 2100 Powers Ferry Road, the 200,000-square-foot property includes three office buildings and a 475-space parking deck. The location is less than one mile east of the Interstate 75/Interstate 285 intersection.
“We plan to perform extensive renovations and utilize APG's strong reputation in the brokerage community to create strong leasing momentum,” Austin Chase, director of leasing at APG, tells GlobeSt.com. “We will focus leasing efforts on small business owners and entrepreneurs who live in the surrounding area who are looking for highly functional, affordable space.”
The four-story office buildings each feature nine-foot ceilings, full height windows, and a generous 3.5 per 1,000-square-foot parking ratio. The office property is currently 78% leased. Kevin Markwordt of Transwestern represented the seller in the transaction.
(How is pre-leased office space impacting Atlanta's market? Find out.)
“We acquired the property at an attractive basis and the investment presents compelling risk-adjusted returns,” says Shep Dinos, a partner with APG. “In today's market, a significant amount of equity is focused exclusively on institutional-sized office investments. However, there are relatively few well- capitalized buyers pursuing middle-market office buildings, creating appealing opportunities for our platform.”
Atlanta's office market closed the third quarter of 2017 with 213,902 square feet of positive net absorption and a total vacancy rate of 17.5%. That's according to CBRE Research's third quarter 2017 data on the office commercial real estate market in the Atlanta area.
“The Atlanta office market is tighter than landlords have seen ever before,” Rees, senior vice president at PMRG,” Scott Rees, senior vice president at PMRG, tells GlobeSt.com. “Occupancy in the office sector is at 85% across all submarkets, but in the Buckhead, Midtown, Central Perimeter and Cumberland-Galleria submarkets newer class A buildings are well over 90% leased.”
(What's the reaction to Atlanta's rising rents in a tightening market? Find out.)
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