But area brokers familiar with both submarkets tell GlobeSt.com the replacement cost today of the structures would be about $50 per sf. Based on that figure, brokers tell GlobeSt.com the acquisition price could be in the $88-million range. "If it was a fire sale, then the total price would be much lower," a Midtown Atlanta broker tells GlobeSt.com.

However, Eric Pawloski, research director at Atlanta-based Bullock Mannelly Partners Inc., says the average price per sf for industrial sales greater than $500,000 during 2003 was about $33 per sf. "The average is for all product types," Pawloski says. "However, even considering only sales of the larger warehouse type, the average is about $31 per sf." Several buildings have also sold for more than $50 per sf.

"Given this project is truly fully leased and considering the abundance of available capital, this sale demonstrates that investors are willing to pay a premium for certain projects," Pawloski tells GlobeSt.com. "the 1.76 million sf of space would definitely make this sale one of the largest this year and one of the largest for the past 12 months."

Even based on a $31-per-sf sales history of 2003, the Dividend Capital acquisition would come in at about $54.6 million, still the largest industrial deal in 2004 to date, area brokers tell GlobeSt.com. The acquisition comprises SouthCreek I, SouthCreek II and the under construction SouthCreek III, totaling 1.3 million sf in South Creek Industrial Park, Fairburn, GA, about 20 miles southewest of Downtown Atlanta. That deal has closed. Another component of that transaction, Eagle's Landing, a 505,000-sf building in Stockbridge, 20 miles southeast of Atlanta near Hartsfield-Jackson International Airport, is scheduled to close in early July.

The acquisition of the four properties increases Dividend Capital's Atlanta holdings to 2.2 million sf. "Leasing activity in large bulk distribution facilities has shown signs of recovery in the past six to nine months and DCT now has a position in three of the key distribution corridors in Atlanta," says Teresa Corral, Dividend Capital's vice president of due diligence.

The four buildings were developed between 1999 and 2004. Tom Shafer of Resource Real Estate Partners represented AmberJack Ltd. in the transaction. AmberJack began selling off its assets in 2000 when it put its entire 500-million-sf, 74-building office and industrial portfolio on the market, according to area brokers familiar with AmberJack's holdings.