This Week's Atlanta Deal Sheet: Atlanta Property Group Pivoting To Industrial, Third-Party Management
Atlanta Property Group is expanding its third-party leasing and management services as the economy sours for suburban office properties.
The full-service real estate firm owns 1.9M SF of office, but it announced this week it is expanding its focus to industrial properties under Managing Partner Shep Dinos’ direction. APG owns seven area office properties, including Palisades in Central Perimeter, Ameris Center in Buckhead and Overlook I in Cumberland/Galleria.
The firm landed 1M SF of third-party management and leasing business, including 460K SF of office and 520K SF of industrial, last year, according to a press release. Managing Partner Austin Chase has been tasked with increasing this service line. APG, which formed in 2003 and now owns and operates 4.5M SF of office and industrial, is focused on managing non-trophy assets.
LEASES
Cadence Bank leased 28K SF at 999 Peachtree St., a 622K SF office tower in Midtown owned by Piedmont Office Realty Trust, according to the firm’s recent Securities and Exchange Commission filing. Cadence's lease runs through 2035. Its current Atlanta office is at 3399 Peachtree.
Piedmont also captured Brand Industrial Services for a 50,400 SF office at Galleria 600 in the Cumberland/Galleria submarket. The company’s new lease at the 432K SF tower expires in 2034 and includes 13 months of free rent, according to the SEC filing. Brand is moving its office from Kennesaw.
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Guardian Pharmacy of Atlanta has moved into a new 16K SF headquarters in Marietta in preparation for growth. The long-term care pharmacy moved to 877 Franklin Gateway, a 52K SF flex office property off Interstate 75 and near Dobbins Air Reserve Base owned by Minneapolis-based Meritex. Guardian plans to increase its workforce by 10% this year, according to a press release, as it moves from its former office at 1750 Enterprise Way, also in Marietta.
Luxury apparel thrift chain The RealReal is shuttering its Buckhead outpost a year and a half after debuting in Atlanta. The move was part of a larger corporate restructuring program for the San Francisco-based company, in which it plans to eliminate 230 jobs, or 7% of its workforce, and close two flagship stores in Chicago and San Francisco also well as two neighborhood stores in Austin and Atlanta, according to filings with the Securities and Exchange Commission. The chain's store was at 3073 Peachtree Road in Buckhead Village.
SALES
Evergreen Properties purchased Indian Creek Shopping Center, a Goodwill-anchored, 59K SF retail center at 4905 Alabama Road in Roswell, from Florida-based The Geneva Group for $8.1M in January, according to the real estate database Reonomy.
FINANCING
Marcus & Millichap arranged a $10.75M acquisition loan for Peachtree Parkway Shopping Plaza, a 92,500 SF shopping center anchored by Dollar General and Goodwill, in Norcross. The buyer’s identity wasn't disclosed. The seller was the Sterling Organization out of Florida, which purchased the property in 2015 for $12.25M, according to Reonomy. Marcus & Millichap First Vice President Garrett Fierstein arranged the financing.
