Coro Realty Advisors, a six-year-old, locally based firm headed by John W. Lundeen III, paid REES 328 LLC, an offshore investor group from Europe, $13.75 million, or a premium $199.45 per sf, for the Peachtree Road NW property in affluent north Atlanta near the affluent Buckhead commercial, residential and entertainment district.
NewBridge Retail Advisors, the local brokerage that negotiated for the seller, declined to disclose the purchase price or the seller's identity. But Atlanta area brokers, in a position to know, confirmed to GlobeSt.com the recorded price and name of the private investment seller's group.
The deal traded below an 8% cap rate. Several prospects were bidding for the 16-year-old, non-anchored asset which has 23 tenants. The average asking rent for non-anchor tenants is $19.50 per sf.
"The property's location in Buckhead helped NewBridge generate a number of competitive offers from other potential buyers," NewBridge principal W. Van Barron tells GlobeSt.com. "Keeping control for the seller was critical."
"Because there were other buyers willing to be equally aggressive, we were able to keep the pressure on the ultimate buyer to perform," he adds. "This was especially tricky, given the number of moving parts that this complicated transaction presented."
NewBridge found the right buyer through its "unique distribution platform," Barron says. "We were able to source a credible buyer with strategic motivation, willing to get aggressive for this multi-story, unanchored retail center."
The deal faced legal issues along the way--issues that could have killed the transaction at any time, the broker says. Byron Alterman of locally based Arnall Golden Gregory served as legal counsel on the deal.
"We were fortunate that our seller's counsel was able to control the legal issues in a timely and equitable manner," Barron tells GlobeSt.com. "Thanks to excellent communication (with Alterman), NewBridge was better able to manage the non-legal issues. Collectively, this was the best scenario for our mutual client."
NewBridge closed $150 million of retail assets in the last 12 months, Barron says. The company has a current deal pipeline valued at over $215 million, comprised of grocery-anchored shopping centers, power centers and malls.
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