JV Snaps Up 460,000-SF Atlanta Office-Flex Campus for $47M

Winthrop Realty Trust, acting with joint venture partner Sealy & Co., has acquired a 470,000-square-foot office-flex complex in Northwest Atlanta. The price tag on the six-structure campus was $47 million, including the assumption of a $37 million mortgage loan at 6.12 percent with a scheduled November 2016 maturity date. Winthrop and Sealy will own the property jointly, and Sealy will handle the daily operations for the joint venture. Winthrop and Sealy did not disclose the exact location of the new asset; however, it sits adjacent to the 12-structure, 472,000-square-foot office-flex complex the partners purchased in 2006 for approximately $35.9 million. Winthrop originally owned a 60 percent interest in the team’s previous Atlanta endeavor, and has a 68 percent ownership stake in the latest venture. In Atlanta, the commercial real estate market does not differ too much from most other U.S. metropolitan markets at this time as it, too, has seen the numbers head downward this year. The average direct vacancy rate for office properties climbed from 14.9 percent in mid-2007, to 15.1 percent in mid-2008, according to real estate services firm Carter. And in the industrial sector, vacancies rose from 10.9 percent to 11.3 percent. Tenants at Winthrop and Sealy’s newly acquired property occupy a total 88 percent of the complex’s space. For investors, Northwest Atlanta, in particular, has proven to be fertile ground this year; many of the city’s major sales this year were in that submarket. On the office side, the 256,000-square foot building at 1600 Terrell Mill Rd. sold for nearly $32.3 million, and the 203,600-square-foot Johns Creek property traded for $32 million. Industrial/flex transactions included the $22.3 million sale of the 175,900-square-foot building at 1000 Gutenberg Dr., and the $20.3 million sale of the 506,200-square-foot property at 930 Hwy 124 Boston-headquartered Winthrop is a REIT involved in business activities that include investing and making loans secured by real estate, engaging in joint venture investments with local real estate partners, and acquiring equity and debt securities involving real estate as the underlying assets. Based in Shreveport, La., Sealy & Co. is a commercial and investment real estate concern that has been in business since 1946.