SK Commercial Realty Closes On Sale of Two Office Buildings in Metro Atlanta
Totaling approximately $16 million, pair of deals represent some of the largest sales volume seen over the past year in respective submarkets as recovery gains steam
ATLANTA (Jan. 31, 2022) - SK Commercial Realty (SKCR), a full-service commercial real estate firm with specialized experience in office, healthcare, and industrial real estate leasing and development, announced today that it has finalized the sale of two office buildings in Metro Atlanta. The properties, which sold for a total of approximately $16 million, include 125 Glenridge Point in the Central Perimeter submarket of Atlanta and Smyrna Heights Pavilion in Smyrna, Georgia.
"These transactions represent some of the most significant sales volumes in the Metro Atlanta area within the past several months, reflecting the local office market is indeed on the road to recovery despite temporary pandemic-related setbacks," said SKCR Senior Vice President Jeff Fortner. "Our strategic partners curated an ideal tenant mix at Smyrna Heights Pavilion, enabling us to attract a strong buyer that is well-positioned for the decade ahead. We also saw great interest from a wide range of prospective buyers at Glenridge Point due to recent momentum in the Central Perimeter submarket and believe the property will serve the new owners well for years to come. We're pleased to kick off 2022 with these two noteworthy wins."
Built in 2005, 125 Glenridge Point is the former site of a Wells Fargo Bank branch. Located in Central Perimeter's "Pill Hill" healthcare hub, 125 Glenridge Point is a 9,660-square-foot, two-story office building that was marketed to a wide variety of potential owners/users including medical, office, and retail users. Ultimately, the property sold to a financial institution that will be able to fully utilize the existing improvements. Brian Lefkoff with Ackerman & Co. represented the buyer, First Carolina Bank, in the $6.5 million transaction. SKCR's Jeff Fortner and Keith Guthrie represented the sellers, a partnership between Pope & Land and Noro Management. The transaction paves the way for First Carolina Bank to plant its flag in Metro Atlanta, with the inaugural branch set to open later this year.
Smyrna Heights Pavilion is a 21,730-square-foot, first-generation medical office building located within the Cumberland/Galleria submarket. Following the financial crisis of 2008, construction halted and the property sat undeveloped with just a steel building frame on the site for nearly a decade. After the property changed hands a couple of times during that period, a local architecture firm, Peacock Partnership began development of the property in 2018 as a medical office building. Five new healthcare-related tenants have signed since, bringing the property to 91% occupancy. The building was sold to an institutional joint venture with a local partner for $9.4 million. SKCR's Jeff Fortner represented the seller, Peacock Partnership.
Recent market data reveals both properties performed exceptionally well for each respective submarket the buildings are located in. Smyrna Heights Pavilion's cap rate registered at a healthy 5.5% at the time of sale due to the property's healthy rent rolls and steady long-term appreciation potential. 125 Glenridge Point's price per square foot came out significantly higher than average for the metro Atlanta office market at approximately $673 per square foot.
Both transactions show promising momentum in some of Atlanta's fastest-growing suburbs and represent the resiliency of the Atlanta office sector as leasing activity and return to the office continues to accelerate. According to a recent report from Savills, total office leasing in Metro Atlanta for Q4 2021 totaled 2.4 million square feet, more than double the volume of Q4 2020. Another report from CoStar shows that Metro Atlanta led all U.S. office markets in total net absorption in the second half of 2021, indicating long-term confidence by corporate real estate decision-makers.
To learn more about SK Commercial Realty, visit www.skcr.com
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About SK Commercial Realty
Creating value through meaningful relationships and a commitment to excellence and integrity are the guiding forces that have enabled SK Commercial Realty (SKCR) to become one of the top commercial brokerage firms in the Southeast. Founded in 1985 by Hugh Scott, Jr. and headquartered adjacent to The Battery Atlanta in Cobb County, the firm's one-stop-shop approach delivers a comprehensive umbrella of commercial real estate services, including agency leasing for office properties, tenant representation, industrial services, and land sales, healthcare real estate, project consulting, investment sales, and property and asset management.
SKCR currently provides real estate services and expertise for over 5 million square feet of premier office, medical, and industrial real estate across Metro Atlanta. Each project is overseen by a senior-level principal who ensures key objectives are met or exceeded, creating a personalized level of service and flexibility that is often missing from large, corporate brokerages. Providing holistic support in all service lines, the firm's portfolio of owned and developed properties includes projects such as Circle 75 Office Park, Parkside Terrace East and West, Mansell Three, Hartsfield Centre, Paces Pavilion Medical Center, 620 and 660 Cherokee Street