Griffin Bets Cosmopolitan North, Sandy Springs Site Buys Will Pay Off

The 31-year-old development and construction firm is paying Raleigh, NC-based Highwood Properties Inc. $8.9 million for Cosmopolitan North, an office park on Barfield Road at GA 400 that houses six two-story buildings totaling 121,932 sf. The purchase price equates to $72.99 per sf based on the building size and about $773,913 per acre based on the 11.5-acre property that sits between Hammond Road and Mount Vernon Highway.

In the Sandy Springs deal, Griffin paid a locally based partnership controlled by Ben F. Kushner $6.78 million, or $1.29 million per acre ($29.70 per sf), for a parcel that houses the 64,647-sf 6075 Roswell Rd. office building, a Bank of America branch office, a KFC/Pizza Hut Express restaurant and a recently closed Checkers Drive-In Restaurant. The office building is 75% leased.

Brokers Ron Willingham and Matt Hawkins of Cushman & Wakefield of Georgia Inc. represented Highwoods in the Cosmopolitan North deal. Griffin senior vice presidents Marc Fritz and Kirk Demetrops negotiated for their company. Fritz and Demetrops also handled the Sandy Springs transaction for Griffin. Mike Crawford of locally based Bullock Mannelly Partners represented Kushner.

In both deals, Fritz says Griffin is looking into the future potential of both acquisitions rather than their current cash flow. "Ultimately, we believe the Cosmo North site can support the type of high-end mixed-use development the Central Perimeter submarket needs, and the size of the office component is perfect for a new building in this market," says Fritz.

The broker says that while Griffin plans to operate Cosmopolitan North in its current state, the company has completed the rezoning process for mixed-use, including office, retail and 280 residential units at the site. The office-retail component will allow a 136,900-sf building. "Griffin plans to study the market to determine the timing of any new development" at Cosmopolitan North, Fritz adds.

Cosmopolitan North will complement Griffin's other Barfield Road investments. They are Perimeter Place, Mount Vernon Place and NorthPlace. "Similar to NorthPlace, we like Cosmopolitan North because of the multiple attributes the location provides," says Demetrops. "It's an exceptional location, providing access to Georgia 400, Marta, Perimeter Mall, Sandy Springs and many of the Central Perimeter's primary surface streets and roads."

The Sandy Springs deal was done at this time because Griffin is "bullish on the long-term potential" of the Atlanta suburb, Demetrops says. "With the new city [status] of Sandy Springs, we anticipate a desire for quality development." Like the Cosmo North site, Griffin isn't rushing into redeveloping the property until the company sees which way the local development market is heading, says Fritz.

"We believe this property is at the heart of what should be the center of Sandy Springs," the broker says. "The site offers excellent access and exposure to Roswell Road, the area's main north-south thoroughfare, as well as Georgia 400, I-285 and the Central Perimeter office submarket via Boylston Drive at the back of the property."

Griffin has hired locally based ELV Associates to lease and manage both acquired properties. ELV brokers Kevin Keifer heads the leasing team.