Chattahoochee Corners at River Green, the nearly 390,000 SF nine single-story office/flex buildings located in Duluth, has been sold to Pennsylvania-based Somerset Properties for $45 million.
Avison Young Atlanta Capital Markets’ Group Principal Casey Keitchen, CCIM, brokered the sale of the single-story office/flex portfolio property which totals 388,213 square feet and is comprised of nine buildings featuring floor-to-ceiling glass windows on all four sides of the complex.
Miami-based B Group Co. Capital Management was the property seller, and this transaction marks the third acquisition by Somerset in the metro Atlanta market, including 3970 Johns Creek Court, also managed by Avison Young’s Keitchen. The B Group Co. has been actively acquiring metro Atlanta assets, amassing more than 1.1 million square feet of Class A office space in the past three years. This sale is the first closed-loop purchase and disposition for the B Group Co. in Atlanta.
“With more than 80 years and four generations of experience in asset and property management and asset repositioning, we knew that market conditions were perfect for a sale at this time. We purchased the asset at an attractive basis and were able to take advantage of substantial price appreciation, resulting in value for B Group Co. and our investors,” said Sebastian Barbagallo, CEO – B Developments and B Group Co. Capital Management. ”Duluth has also experienced explosive growth over the past five years that positively impacted the property value and made it ripe for acquisition by a new owner to capitalize on that growth,” he added.
Located in a quiet park-like setting with high-class amenities, including a fitness center, Chattahoochee Corners at River Green is conveniently located off Peachtree Industrial Boulevard, which boasts over 45,000 vehicles per day. The property’s prime location draws on excellent labor pools and offers access to a variety of local amenities, including more than 30 restaurants, four hotels, easy access to the Chattahoochee River Nature Trail and three golf clubs within a one-mile radius.
“This was a challenging deal to close due to shifting market dynamics. From the time the deal went under agreement to the time the buyer’s due diligence was ending, the SOFR rate had increased over 10 times and materials pricing for roofs nearly doubled, among other typical deal issues,” said Casey Keitchen, CCIM, Principal – Atlanta Capital Markets Group. “We were fortunate to be able to navigate the choppiness of the capital markets through long-term relationships with both B Group Co. and Somerset Properties to successfully close the deal,” he added.
Built in 1997, the property was planned with the future in mind. Single-story buildings provide efficient access for tenants and limit unwanted exposure. In addition, the property’s proximity to the Chattahoochee River Nature Trail provides quick access to a range of outdoor amenities like canoeing, hiking, swimming and biking. For tenants in need of warehouse space, buildings 4350 and 4570 have clear dock-high space for light manufacturing and distribution.
“Somerset plans to implement a strategic capital program resulting in more efficient operations along with enhancements to the curb appeal and on-site amenities, leading to additional value creation,” noted Ketichen.