ATLANTA—KBS’s REITs have been busy selling and buying assets in the Southeast this week. KBS REIT I sold the Hartman Business Center One while KBS REIT II sold Hartman Business Center II. Both industrial assets are in the Atlanta submarket of Austell, GA.
Located 18 miles west of Downtown Atlanta, Hartman Business Center One sold for $16.1 million. The industrial asset is within the Interstate 20 West/Douglasville submarket, one of Atlanta’s most desirable industrial areas. The 1.8 million-square-foot, 150-acre master planned industrial park was built in 2006.
Hartman Business Center Two sold for $12.7 million. The 23.3-acre industrial facility in Atlanta’s Interstate 20 West submarket, 20 miles from Downtown Atlanta. The single-story building is part of the Hartman Business Center, a 150-acre master planned industrial park and is fully-leased to Nexen Tire America.
“The lack of new construction has helped increase occupancy across all sectors in Atlanta,” Michael Bull, president of Bull Realty in Atlanta. He pointed to an industrial vacancy rate that has improved from 13.6% a year ago to 12.7% today.
“The tenants' market we have had since 2009 in all sectors is adjusting to one of more equilibrium,” Bull continues. “Depending on the submarket, the incentives for tenants have decreased and landlords are seeing some rental rate growth. The hot industrial properties are the large big-box properties being leased for online product storage and delivery.”
Beyond the Atlanta dispositions, KBS Strategic Property REIT acquired a $15.75 million non-performing first mortgage loan for $8 million. The loan was collateralized by Primera/University Court, a three-building office portfolio in Orlando totaling 106,672 square feet.
Primera Court I and Primera Court II are twin, 31,840-square-foot buildings located in Lake Mary, FL, 20 miles north of Downtown Orlando. The buildings were completed in 1999 and 2000, respectively, and offer easy access to Interstate 4 and State Roads 417, 419, and 427.
The third building in the portfolio is the 42,992-square-foot University Court, located blocks from the University of Central Florida campus in the University submarket of Orlando. The two-story building was developed in 2001 and is near State Roads 417, 408 and 50.
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