What Big Money Thinks About Atlanta
Investment momentum is up big time this year, says Cushman & Wakefield's David Meline. That and renewed interest among institutional investors in Atlanta will be hot topics at our 5th Annual Atlanta Capital Markets Summit next week.
David is a good barometer of what capital is thinking when it comes to Atlanta. And there's good news: Not only have institutional investors put Atlanta back on the map, many investors are now looking in the outer suburbs as well as the urban core. (The cash got a little older, had a couple of coins and wants to settle down in the 'burbs.) “There is broader and deeper investor demand,” David says. “Institutions are looking selectively throughout the suburbs” as good employment and economic news about Atlanta resonate with investors.
Case in point: TownPark Ravine, a three-building 367k SF office complex in Kennesaw that's more than 93% leased is being sold by Taylor & Mathis. It's under contract, but while David couldn't disclose details yet, he says he expects the sale to set a new benchmark of about $150/SF for Class-A outer suburban office. And recently David and his team even helped Ackerman & Co JV sell its Premier Plaza in Central Periemter for $162/SF (while suburban, closer to Downtown ATL), a big number for suburban office only 78% leased.
David is hoping that momentum carries over to Interstate North Office Park, Aegon tapped C&W to help sell the more than 1M SF office park in the Cumberland/Galleria submarket. While around 80% occupancy—a clear value-add play—being near the new Braves stadium and its amenities should give the property a marketing boost.
