The single-story office/flex structure is located on 34 acres inAtlanta's Northwest submarket. Sacramento, CA-based PanattoniDevelopment Co. developed the building for Coloplast in 2005 undera sale/leaseback arrangement that included a neighboring 98,000-sfdistribution center, which Coloplast continues to lease.


The project was valued at $10 million, and Coloplast's leaseagreement for both buildings was valued at about $50 million. Thecompany broke ground a new $40-million facility in Minneapolisearlier this year.


Gannon Shepherd, a senior associate with Jones Lang LaSalle inAtlanta who was involved in the transaction, tells thatthe Northwest office submarket is relatively tight with a limitednumber of large blocks of office space available. There's a fairamount of demand for space, he says, and calls the Mohawk deal a"great economic play in an efficient building with manyupgrades."


Shepherd and JLL managing director/senior vice president DuncanGibbs represented Mohawk in the transaction, while Mike Gray, asenior vice president and project principal in Panattoni's Atlantaoffice, represented Coloplast and Panattoni. The rent rate was notdisclosed, though Shepherd says class B office rents in NorthwestAtlanta range from $9 to $12 per sf annually on a net basis.

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