Cobalt Adds 436,000 SF to Portfolio

Lewis D. Friedland, managing partner with Cobalt Capital Partners tells GlobeSt.com that Cobalt's ability to pay cash and close quickly gave it the edge over several other bidders. The assets are at 4350 and 4380 International Pkwy, in the south submarket, adjacent to Hartsfield-Jackson Atlanta International Airport. "Our plan is to take some of the larger space and convert them into smaller units, with the intent of achieving higher rental rates," Friedland comments.

Cobalt Capital Partners will handle management of the 63%-leased properties, while turning over the leasing assignment to locally based Colliers Spectrum Cauble. Vice presidents Frank Fallon and Chris Riley and associate Brian Budnick with CB Richard Ellis' Atlanta office represented the Kapolei, HI-based seller in the transaction.

According to a recent report released by Colliers International detailing the south Atlanta submarket, buildings were trading from $41 to $67 per square foot. Approximately 16,000 square feet is currently under construction with a YTD net absorption at just over one million square feet. The average lease ask is $2.95 per square foot.

"Our plan is to take some of the larger spaces and convert them into smaller units, with the intent of achieving higher rental rates," Friedland says. He adds that budget and time estimates haven't been determined for the project.

He goes on to say that the 12-year-old assets fit perfectly into Cobalt Capital's acquisition strategy, which involves investments in light industrial products in infill locations. "Atlanta is one of our larger markets," he adds, noting that the company is working other deals in 13 other major markets.