Virginia Surety, an affiliate of the Onex Corp., leases 51% of the building and Hagemeyer North America, a distributor of products and services focusing on business-to-business markets in electrical materials, leases 38%. KBS plans to hold the asset long term.

"We acquired the building because it is a good quality building with excellent construction," KBS Capital Advisors senior vice president David Blair tells GlobeSt.com. KBS REIT represented itself in the transaction. Cushman & Wakefield of Georgia Inc. represented the seller, FSP Royal Ridge Corp.

The property sits in direct proximity to North Point Parkway, Alpharetta's main retail corridor. It is also near the Old Milton Parkway exit off Georgia 400, a major north/south state route that joins Alpharetta and North Fulton County to the Atlanta metropolitan region via Interstates 285, 75 and 85. "The location within Alpharetta is excellent, it's a growing area," Blair says.

Alpharetta became one of Atlanta's fastest growing suburbs in the mid-1990s. The growth was triggered by the southern extension of Georgia 400 and its connection with Interstate 85, as well as the opening of the 1.3-million-sf North Point Mall. Royal Ridge is part of Royal 400, a 340-acre master planned office park comprised of eight class A office buildings totaling 1.3 million sf.