The market for loft office space has grown considerably over the last number of years, and absorption of space has occurred at unprecedented levels. Despite its growth, creative loft office space remains a small fraction of Atlanta's total office market at 4 million square feet, or 1.3%, of the total market, according to Origin.

Over the last two years, this segment has completed a dramatic portion of the absorption relative to its size. In 2015, Origin reports, loft absorption as a percent of the market total was 5.6%. That's three times its market share. In 2016, that absorption grew to 12.2%, or seven times market share).

According to Welk, the investment strategy for Ellsworth is to realize value by building on the momentum that has been established in the redevelopment and repositioning of the asset and increasing the occupancy commensurate with the strong market fundamentals. Origin will also work to create value includes the possible development of the neighboring 1.2-acre vacant parcel. Zoning for the parcel is flexible and would allow additional commercial development to expand the amenities of the complex, or a small residential or townhome development.

Stream Realty Partners, the seller of the property, originally acquired the asset in 2014 and completed a comprehensive conversion of the former industrial property to loft offices in 2015. The buildings originally were developed in 1964.

(Is this the model for office space in the future? You decide.)

This deal marks the second time in less than nine months that Origin has acquired a creative, loft style complex in Atlanta. In April 2017, the company, in a partnership with Atlanta-based Urban Realty Partners, acquired Puritan Mill, a two-building, 83,000-square-foot asset located at 916-950 Joseph E. Lowery Boulevard in the West Midtown submarket. Puritan Mill is currently 100% leased and plans are being finalized for the conversion of an existing 18,000-square-foot industrial building in to additional loft office space.

In the last three months, Origin also has completed two other significant projects in Atlanta. In Fall 2017 the firm acquired 675 Highland, a 125-unit multifamily project with ground floor retail space and a neighboring land site for development. (Origin more than doubled its multifamily profits in Atlanta with this deal.)

Origin is preparing to launch construction of an additional 39 micro units at 675 Highland, along with 10,000 square feet of creative office space. Finally, Origin, in a joint venture with Atlanta-based CF Investments, completed the Olmsted Chamblee, a 283-unit, class A ground-up development that also features 11,000 square feet of retail space.