Rothenberg-Rosenfield Acquires Oakbrook North Office Complex for Well Over $36M
- Mar 31, 2016
By Robert Demeter
Atlanta–Rothenberg-Rosenfield Inc., a private real estate firm specializing in long-term investment acquisitions, is expanding its Atlanta portfolio beyond retail. The company recently acquired Oakbrook North, a 700,000-square-foot office complex in Norcross, a northeast suburb of Atlanta, marking the firm’s largest flex office and industrial acquisition to date.
“While we continue to pursue retail real estate investment opportunities, we expect Oakbrook North to deliver financial returns that current retail offerings cannot match in the near-term,” Josh Rosenfield, director of property acquisitions for Rothenberg-Rosenfield, said in a prepared statement.
Oakbrook North includes 11 buildings situated on 50 acres along Oakbrook Parkway. Rothenberg-Rosenfield acquired the property from Sperry Equities, an Irvine, Calif., real estate company represented by Colliers International, for $36.6 million—approximately $52 per square foot. Reinsurance Group of America provided financing.
The complex is currently 74 percent leased to 60 tenants, including American Megatrends, PulteGroup and YesVideo, among others. Approximately 185,000 square feet are currently available and vacant suites are undergoing renovations with the goal of bringing them to industry standard. David Nash of Nash Commercial Real Estate, the exclusive leasing representative, stated that roughly 70,000 square feet of vacant space will become highly desirable to potential tenants following renovations, and should lease quickly. The company plans to invest $1.5 million in renovation work at the site.
“This acquisition fits into the scope of our Atlanta portfolio,” added Rosenfield. “The flex office product type has been overlooked as a viable investment asset type, but we foresee increased demand and low supply in the near term that will provide for rental rate, occupancy and asset appreciation across metro Atlanta.”
Rothenberg-Rosenfield purchased the asset at well below the replacement cost and at a significantly lower price point compared to similar type of office acquisitions in the market. Rosenfield indicates that its below-market position enables the firm to capitalize on the asset’s value-add prospects and deliver a better-than-average long-term return.
With the addition of Oakbrook North, Rothenberg-Rosenfield now operates more than 1.2 million square feet of commercial assets in Atlanta. Other properties in the area include Marietta Trade Center in Marietta, Ga., and Centennial Village in Roswell, Ga. The firm’s national portfolio now tops 2.3 million square feet of commercial and residential properties in Colorado, Georgia and New York City, valued at $250 million.