Compson acquired the property for $36.1 million, or about $177.83 per sf, in October 2004 under a sale-leaseback agreement with Toll Bros. The luxury homebuilding company fully occupies the asset, and Michael Comparato, president of Compson, tells GlobeSt.com there are approximately 13 years left on its lease. Current published rent rates for office properties here by several owners average in the range between $21.75 per square foot and $23.75 per sf.
Comparato declined to identify the buyer, but said the company is based in Atlanta. When Prudential, a previous tenant, exited the building in late 2003, Toll Brothers "bought the property vacant and completely gutted it, transforming it into its headquarters," Comparato says.
Including the nearly $7.9-million gain on the sale alone, which represents a better-than-20% return, he says, "Compson's total return was much higher, in a range of nearly 60%. On a national basis, the sale price was in line with single-tenant office assets."
With the proceeds, Comparato says, "We'll be actively pursuing acquisitions of single-tenant properties and assets in the value-added arena, probably doing a 1031 exchange." There is no specific geographic target, he says, adding, "Good real estate can be found in all 50 states."
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