ATLANTA—Macfarlan Capital Partners and Cole Real Estate Investments just acquired a two-building office portfolio in Midtown Atlanta. The class A trophy office campus is leased to AT&T.
The joint venture now owns the 16-story Midtown I and the eight-story Midtown II. The two office assets span 794,110 square feet of space. The joint investment of more than $225 million includes allowances payable to the tenant as part of the transaction.
“The Midtown I and II acquisition represents a great opportunity for Macfarlan to provide its investors with a strong current yield from a trophy asset backed by outstanding credit,” Bryan Larson, firm partner for Macfarlan, tells Globest.com. “We are really excited about the opportunity to partner with Cole on this transaction and look forward to working with them on other transactions in the future.”
The campus sits on 7.22 acres and was originally a build-to-suit for AT&T in 2001 and 2002. Macfarlan's team worked with AT&T to extend its tenancy in this project for 11 more years. The Midtown I office tower totals 512,101 square feet and the mid-rise Midtown II is 282,009 square feet.
“Cole's partnership with Macfarlan provided an opportunity to jointly acquire a class A asset that meets our disciplined acquisition criteria,” Thomas W. Roberts, executive vice president and head of real estate investments for Cole, tells GlobeSt.com. “With this acquisition, we are able to expand our portfolio of mission-critical office assets leased long term to creditworthy tenants.”
Chuck Vogel, senior vice president for real estate joint ventures, represented Cole. Chris Marshall of Jones Lang LaSalle in Atlanta represented the seller. Mark West, Brandon Chavoya and Coler Yoakam with HFF's Dallas office represented Macfarlan in arranging debt financing with RBS.
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