Perimeter Place Trades for Nearly $12M

Using proceeds from a 1031 exchange, Perimeter Sarbin paid top price for the property at $141.18 per sf. Area construction industry consultants tell GlobeSt.com that price was still under the current average estimated replacement cost of $150 per sf for most class A office structures.

The 2.7-acre property includes the four-story office building and an adjacent three-level parking deck at 800 Mt. Vernon Highway. Key tenants are LJ Melody & Co., RJ Griffin & Co. and Worthing Southeast.

"This transaction was a testament to Perimeter Place's prime location and quality, unique size and strong tenant base," says Marc Fritz, Griffin's senior vice president. "It's a win-win for both parties, as the building's price is well below replacement cost, and the deal also is a further example of the abundance of investment capital targeting Atlanta commercial real estate."

Kirk Demetrops, also a Griffin senior vice president, says the transaction allows his company "to redeploy equity capital into new developments, such as NorthPlace, a 370,000-sf, mixed-use development also in the Central Perimeter submarket." He adds, "We've begun development of NorthPlace, which is located across the street from Perimeter Place, with residential construction starting and office building pad sites available in early 2005."

Demetrops and Fritz negotiated for Griffin. Scott Jackson with Jackson Oats Shaw Corporate Real Estate Co. represented Perimeter Sarbin.