Located three quarters of a mile from Interstate 75, Atlanta's primary northwest-southeast artery, Newmarket Business Park is home to four single-story and two two-story office buildings. The office assets were constructed between 1983 and 1985.

A number of large corporate headquarters operations are within five miles of the office asset, including Home Depot, Genuine Parks, Printpack, HD Supply, and Race Trac Petroleum. The new Atlanta Braves Stadium, 2.5 miles to the south, is bringing many contemporary developments and amenities to the area.

(Atlanta recently saw a significant sale-lease back office trade. Get the analysis.)

“The equity investor was attracted to the opportunity because of the potential to either create excellent cashflow during the ownership period and or provide cap rate compression benefits due to the credit quality of the lease on a potential future sale,” says Quarton. The office asset is 85% leased.

During the second quarter, class A office product recorded occupancy gains totaling 362,072 square feet, a significant increase from the previous quarter's negative absorption, PMRG reports. Class A direct office occupancy witnessed a decline for the second quarter in a row, sliding by 80 basis points to 85.3%. However, PMRG reports, quarterly decline in class A direct office occupancy levels largely resulted from new supply outstripping demand with nearly 1.3 million square feet of office space coming online.

By contrast, class B direct office occupancy continued its positive climb with an increase of 70 basis points during the quarter to settle at 83.2%, exactly 70 basis points higher than its mid-year 2016 mark. And asking rental rates continued to rise as new deliveries coupled with strong leasing demand for quality office space helped push rents to new highs during the quarter.

“Atlanta's office market rebounded from a flat first quarter to post a strong 537,708 square feet of direct absorption in the second quarter of 2017,” Bill Weghorst, president of PMRG's eastern division, tells GlobeSt.com. “One of the biggest indicators to the health of the Atlanta office market is the fact that we delivered 1.3 million square feet of new office in the second quarter and occupancy levels remained relatively flat.

ATLANTA—Newmarket Business Park, a 471,486-square-foot, class B, multi-tenant office property in Marietta, GA, has won the confidence of investors. Walker & Dunlop closed an approximate $59 million combination of bridge and equity financing against the office asset.

Led by Mark Strauss and Rob Quarton, Walker & Dunlop's Irvine, California-based team represented the sponsors, Praelium Commercial Real Estate and South Street Partners, in acquiring the asset. A debt fund placed the financing, arranged as a floating rate bridge loan with full-term interest only payments. A hedge fund invested the equity. According to W&D, the transaction highlights the availability of attractive bridge financing in today's market.

(Separately, a six-building office portfolio recently traded in Mariette. Get all the details.)

“The property received a tremendous response from the capital markets as the lenders recognized the downside risk in the transaction was mitigated by the significant portion of the rent attributed to Home Depot,” says Strauss. “The bidding was very competitive at leverage points between 80 and 85% of cost, with final non-recourse pricing close to 400 over LIBOR.”

Located three quarters of a mile from Interstate 75, Atlanta's primary northwest-southeast artery, Newmarket Business Park is home to four single-story and two two-story office buildings. The office assets were constructed between 1983 and 1985.

A number of large corporate headquarters operations are within five miles of the office asset, including Home Depot, Genuine Parks, Printpack, HD Supply, and Race Trac Petroleum. The new Atlanta Braves Stadium, 2.5 miles to the south, is bringing many contemporary developments and amenities to the area.

(Atlanta recently saw a significant sale-lease back office trade. Get the analysis.)

“The equity investor was attracted to the opportunity because of the potential to either create excellent cashflow during the ownership period and or provide cap rate compression benefits due to the credit quality of the lease on a potential future sale,” says Quarton. The office asset is 85% leased.

During the second quarter, class A office product recorded occupancy gains totaling 362,072 square feet, a significant increase from the previous quarter's negative absorption, PMRG reports. Class A direct office occupancy witnessed a decline for the second quarter in a row, sliding by 80 basis points to 85.3%. However, PMRG reports, quarterly decline in class A direct office occupancy levels largely resulted from new supply outstripping demand with nearly 1.3 million square feet of office space coming online.

By contrast, class B direct office occupancy continued its positive climb with an increase of 70 basis points during the quarter to settle at 83.2%, exactly 70 basis points higher than its mid-year 2016 mark. And asking rental rates continued to rise as new deliveries coupled with strong leasing demand for quality office space helped push rents to new highs during the quarter.

“Atlanta's office market rebounded from a flat first quarter to post a strong 537,708 square feet of direct absorption in the second quarter of 2017,” Bill Weghorst, president of PMRG's eastern division, tells GlobeSt.com. “One of the biggest indicators to the health of the Atlanta office market is the fact that we delivered 1.3 million square feet of new office in the second quarter and occupancy levels remained relatively flat.