Rushmore paid Transwestern a below-replacement cost of $18.8 million or $60.36 per sf for the single-story buildings on a 30-acre site. Wrightwood Capital funded the acquisition with a three-year loan for $20.57 million at a floating interest rate based on Libor. Buyer, seller and lender are all from Chicago. Wrightwood officials didn't explain why the loan amount was greater than the acquisition price.

The 47%-leased building has 16 tenants and an average asking base rent of only $8.75 per sf. A Wrightwood representative tells GlobeSt.com Rushmore is aware of the below-market rent but is holding it at that figure "to raise initial occupancy and draw attention to the asset." Grubb & Ellis statistics put class B office rates for Atlanta at $16.5

The deal was done at this time because Rushmore was confident it could repeat previous lease-up performances it had completed at other comparable area properties. "They have acquired other properties in this market and were successful in executing their business plan, which includes increasing occupancy by aggressively marketing the space and offering lease rates at or below market rates," the Wrightwood representative tells GlobeSt.com.

Wrightwood Capital, formerly Cohen Financial, is making its second transaction with Rushmore. The first deal at the Peachtree Corners submarket in Norcross "involved a similar business plan that successfully repositioned and increased the occupancy of the property," says the Wrightwood representative.