ATLANTA-Meritex Enterprises, a private real estate investment and management company in Minneapolis, has closed on a debt and equity joint venture with an institutional partner. The deal involves Meritex’s 10-building, 726,500-square-foot office and warehouse portfolio in Atlanta.
Doug Seylar and Murray Kornberg of CB Richard Ellis' Minneapolis Debt and Equity Finance division facilitated the deal. The institutional partner invested $24 million. The funding included a secured loan and an equity investment.
“Meritex did not disclose its original purchase price, but the firm retains a significant equity position,” Seylar tells GlobeSt.com. “This transaction confirms that Atlanta remains a desirable investment market for institutional investors.”
Indeed, Atlanta’s office market is in positive territory. Office absorption totaled almost 400,000 square feet in the second quarter, the strongest period of occupancy gain since the third quarter of 2007, according to Colliers International.
Located in the northern suburbs of Lawrenceville, Norcross, Smyrna and Kennesaw, the class A, multi-tenant properties range in size from 41,000 to 122,000 square feet. The portfolio is 95% occupied with 40 tenants, many of which are corporate or regional headquarter locations. Meritex will maintain management of the properties with its Atlanta-based team.
Meritex acquired the portfolio in December 2010 from Young Ventures and the estate of Maxwell W. Young. At the time of the acquisition, Dan Williams, CEO of Meritex, said the deal was significant for Meritex not only due to its scale, but also because of how well the properties aligned with its strategically targeted submarkets and product type. With this purchase, the firm owns 1.5 million square feet of multi-tenant industrial product in the Atlanta market.
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.
