Batson-Cook Selling Successful Athens Mixed-Use Development

ATLANTA—Batson-Cook Development just listed its West Washington Street Building in Athens for sale. The project offers 28,000 square feet of office space on the top floor and 14,600 square feet of street level retail space.

“With the project nearing full occupancy and stabilization we are seeking to sell an asset that has the maximum time left of the in-place leases, offering an investor an unequaled opportunity to acquire a project secured by long term leases and strong regional and national credit,” Jeremy Hammerton, vice president of Development at Batson-Cook tells GlobeSt.com. Developed in 2011, West Washington Street is a class A mixed-use building next door to the historic Georgia Theater.

As Hammerton sees it, the West Washington project is an example of a growing trend where projects located near higher education campuses are becoming increasingly popular with investors.  While the West Washington Building is not on the University of Georgia campus, the University is in the downtown area creates traffic and opportunities for the mixed-use project.

Although Batson-Cook declined to disclose the asking price, Hammerton did share that the stabilized net operating income is more than $600,000 annually. With the high barriers to entry and the uniqueness of this project, he expects to see offers at aggressive cap rates and interest from local or regional buyers driven by a strong affinity for Athens or the university.

“This is asset is perfect for such a wide range of investors that it is hard to narrow down exactly who the profile buyer is,” Hammerton says. “This investment is ideal for a high net worth individual looking to place capital in regional income producing real estate, or for a partnership to add to a portfolio, or even for 1031 exchange buyer. Similar projects in the southeast have brought a wide range of even atypical buyers.”

Tenants include IMG Worldwide, Jackson-Spalding, and Partner Software. The project, which also includes a 540-space parking deck for downtown, is also home to a Waffle House, Momma Goldberg’s Deli, and Fuzzy’s Taco Shop. The retail component of the project is  over 75% leased. The building is LEED Gold certified.

“The Athens office market is ripe with growing companies that are looking for newer space with all the amenities and current technology,” Hammerton says. “Being a college town, Athens is witness to many small startups that open in smaller second generation space that affords them the basics, and as they grow so does their image and needs for maintaining an office location that helps them retain clients and employees.”