ATEL struck the deal at a 9.2% cap on in-place rents. While the building at 3535 S. Tamarac Dr. is 80% occupied, ATEL believes it can realize upside. "Past managers neglected the property and its tenants," says Dean Cash, CEO of ATEL Capital Group.
Adds Danny Rabb, director of acquisitions for ATEL Properties, "Almost no capital improvements were made since the original development in 1975. We have a significant budget in place for renovations."
ATEL is retaining Coldwell Banker for building management, leasing, and renovation. Maury Cohen, an 18-year veteran of the Hampden corridor and senior broker at Coldwell, will handle the building lease-up.
David Tilton and Brad Morton of Frederick Ross handled the transaction for the seller, locally based Chandelle Development. Chandelle specializes in large-scale retail redevelopments. Its purchase of Hampden was in conjunction with a portfolio acquisition that included the adjoining Tiffany Retail Plaza.
Chandelle is currently in negotiations with Whole Foods and has additional plans under way for a major cosmetic upgrade at the neighboring Tiffany Retail Plaza.
ATEL Properties Inc. and its affiliates have been actively investing in income producing property for the past 10 years. A wholly owned subsidiary of ATEL Capital Group, the company is now raising an equity fund that will target assets similar to Hampden.
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