Buckhead Office Sells Despite Space Surge

ATLANTA- Santa Ana, CA-based Grubb & Ellis Realty Investors LLC has acquired One Live Oak Center, a 199,000-sf office building in the Buckhead/Lenox submarket on behalf of tenant-in-common investors. The seller was Fort Worth, TX-based Crescent Real Estate Equities, an affiliate of Morgan Stanley Real Estate. G&E closed escrow with low leverage financing in place and a loan provided by the American National Life Insurance Co. The value of the transaction has not yet been disclosed.

“It’s a very solid asset, class A mid-rise office building with structured parking right in the heart of Buckhead, which is the most appealing submarket for office product in Atlanta,” Jeff Hanson, president and chief investment officer of Grubb & Ellis Realty Investors, tells GlobeSt.com. He adds that part of the building’s appeal is its proximity to Lenox Square Mall and the Ritz Carlton Hotel, among other high-quality lodging options.

One Live Oak, which opened in 1982, was also attractive to the buyer because of the historical performance of the asset, which has consistently maintained high occupancy and solid credit tenants, says Hanson. The building is currently 92% leased, with anchor tenants including the Securities and Exchange Commission and the University of Georgia Real Estate Foundation Inc. Rental rates at the building range between $24 and $25 per sf.