Cobalt Industrial REIT II also recently bought the Tradeport I and II buildings, totaling 436,000 square feet, from James Campbell Co. LLC. The new landlord plans to break down some of the larger space into smaller units in order to achieve higher rents.
The Shawnee Ridge acquisition brings Cobalt's local holdings to 6.6 million square feet, making Atlanta the largest of 14 markets where it operates. The company now owns a total of 27 million square feet nationwide.
"We're very positive on Atlanta long term," Lewis Friedland, Cobalt managing partner, tells GlobeSt.com. "We really like this portfolio because it has a lot of variety of space uses and configurations that can accommodate a broad range of tenants."
Shawnee Ridge is a 587-acre business park within Atlanta's Interstate 85 Northeast industrial submarket and has 44 buildings totaling 5.9 million square feet, including some user-owned buildings. Atlanta-based Industrial Developments International Inc. built the nine-building portfolio from 1990 to 1997 that Cobalt acquired from SAR at Shawnee Ridge LLC.
Friedland notes that the portfolio had been under contract last fall to a publicly traded REIT and Cobalt began working toward an acquisition after that deal fell out. CB Richard Ellis senior vice presidents Chris Riley and Frank Fallon, along with senior associate Brian Budnick, represented the seller.
Cobalt was able to simultaneously close an "attractively priced" five-year fixed-rate mortgage for approximately 60% of its investment cost, Friedland says. He adds that Cobalt is eyeing other possible acquisitions in the Atlanta market, in particular light-industrial properties in infill locations.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
