Major Office Warehouse Conversion In Works

The partnership, PSIP LLC, paid Peachtree Square LLC $44 per sf for the 32-year-old, 91%-leased property which was originally developed by Atlanta-based Dunn Properties. The partners plan to renovate the park and sell the buildings individually. The properties are located between 2683 and 2715 Peachtree Square.

The buildings range from 13,000 sf to 26,000 sf and will sell for an average $65 per sf after renovation. Buildings with upcoming lease expirations will be sold first. "It will be one of the largest office warehouse sale conversions ever completed in the Atlanta industrial market," Nickol tells GlobeSt.com.

The partners already have sold two buildings--a 19,910-sf structure and a 13,611-sf building, both occupied and sold as leased investments. The partners did the deal at this time because "user demand for small buildings is at a high and there is little supply," Nickol says. "The park is also benefiting from 91% occupancy with some early lease expiration in '05."

The acquisition cost was "well below replacement and as some of the buildings are small, 13,000 sf to 26,000 sf, replacement will exceed our asking price." The park was never on the market. The partners sought out the owners to do the deal which was brokered by David Beak and Nathan Anderson of Atlanta-based NAI Brannen Goddard. The transaction took four months to complete, from contract signing to closing.