ATLANTA—Baltimore Row, a 125,000-square-foot historic mixed-used property, just traded hands. The sale price: $10 million.
Dion Meltzer of Meltzer Properties and Chaz Y. Lazarian, Esq. of Insignia, in partnership with Gamma Real Estate, acquired the asset. The mixed-use property is located between West Peachtree Street and Spring Street in Midtown Atlanta.
As Atlanta's first multifamily development, built in 1885, a portion of Baltimore Row is a National Historic Landmark. A century later, E.W. Howington & Co., added a modern atrium annexing the historical portion to new commercial and residential space.
“Atlanta's in-town office market is tightening by the day and construction costs continue to outrun rental rates, so we are in a historically unique situation in which demand is outrunning supply,” Randy Beavers, a broker at Cushman & Wakefield, tells GlobeSt.com. “The market for loft space is even more constrained, so re-developing existing infrastructure is a great play for investors right now while ground-up construction isn't feasible.”
The partners will invest $2.5 million in renovations to the 100,000 square feet of leasable commercial real estate space and common areas of the building beginning in August. The projected completion date in December 2015.
The project's fully renovated loft office space will serve the neighborhood surrounding Emory University Hospital's Midtown campus. Baltimore Row's 15 rooftop townhome apartments will undergo major renovations and be sold as condominiums.
“I have always been intrigued by the history of Atlanta and how far the city has come since I arrived in the US just prior to the 1996 Olympics,” says Meltzer. “When I discovered this historical building in a prime location, I was motivated to invest in a piece of the city's history. My partners and I recognized the opportunity to connect Baltimore Row to Atlanta's future by appealing to progressive companies who want to attract talent and clients to a more urban, 24/7 environment.”
Baltimore Row was purchased from Baltimore Row, L.P. Del Creviston of Sperry Van Ness represented the seller in the transaction. Lazarian, represented the buyer.
“Baltimore Row is a hidden jewel nestled in an amazing location” says Lazarian. “The uniqueness of the historical row houses coupled with the newer office building and roof top residential makes up one great development. We are excited about the future of this project” he said.
Loft office space in Atlanta, the bulk of which is located in former industrial areas such as West Midtown, is an increasingly hot commodity. Baltimore Row is a rare find in that regard, due to its West Peachtree Street address and proximity to Marta rail, hotels, and multifamily projects.
“Our investor's commitment to this project is not only a reflection of the pent-up demand for the in town, live-work-play environment but also a shift in the appreciation of Atlanta's historic buildings and their preservation,” Laura Stephens, broker of Cushman & Wakefield, tells GlobeSt.com. CushWake will be the office leasing and property management team for Baltimore Row.
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