American Realty also wouldn't disclose the purchase price or the seller's identity in a prepared statement. But area brokers familiar with the SouthWoods complex tell GlobeSt.com the industrial property probably generated a below-replacement cost price of $20 million or about $58.69 per sf.
Area brokers and construction industry estimators tell GlobeSt.com the current replacement cost for the 15-tenant air cargo and distribution asset is about $60 per sf or $27.26 million.
Jennifer Bradford, American's asset manager, says in the statement the company "targeted an industrial acquisition, given the sector's ability to rebound out of recessionary conditions and to further diversify our client's portfolio."
She says the property's close proximity to Hartsfield Airport is a plus. "We believe that bulk distribution industrial assets will remain very well-leased in this submarket and in high demand throughout our anticipated hold" period, Bradford says.
The acquisition is "in line with American's favorable outlook for the industrial sector," the statement says. "The firm believes that, due to the sector's defensive characteristics, industrial property will continue to be a stable performer over the short terms and provide strong returns over the full market cycle."
The company is scouting for similar class A properties in undisclosed markets.
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