PAC Nabs 4 Office Assets in Atlanta
- Jan 31, 2018
Preferred Office Properties, a division of Preferred Apartment Communities, has acquired Armour Yards, a development containing four recently converted office buildings in Atlanta’s Buckhead submarket. Located in warehouses constructed in the 1960s, the project resulted in 186,779 square feet of new, Class A office space. The owner financed the acquisition a $40 million non-recourse mortgage held by John Hancock. The 10-year loan has a fixed rate of 4.1% and amortizes following a 30-year schedule.
Located at 120, 165, 225 and 255 Ottley Drive N.E., alongside Interstate 85, the office buildings are situated approximately five miles north of downtown Atlanta. The immediate area contains a number of industrial properties, including a maintenance facility for the city’s metropolitan rail system, MARTA. The space across the four structures is currently 96 percent leased to a list of tenants including Coyote Logistics, Influence Health, FullStory and the GSM Association.
The project’s developers, Third & Urban and J.P. Morgan, completed the adaptive reuse of the buildings during the past two years. The two firms had transformed the previously industrial structures with construction financing totaling $32 million from SunTrust Bank, according to Yardi Matrix.
“Armour Yards is a high quality development that gives us exposure to a growth segment of the market by catering to customers that want a different workplace experience from the traditional glass tower. This acquisition provides us the opportunity to invest in an asset having a stable, impressive rent roll and located in what we believe is an irreplaceable infill site,” said Boone DuPree, CEO of Preferred Office Properties, in a prepared statement.
Image courtesy of Yardi Matrix