FCA Spends $44M on Atlanta Retail

ATLANTA—Parkway Pointe, a 196,664-square foot retail center in Atlanta's Cumberland Galleria submarket, has traded hands. The retail asset sold for $43.9 million, or about $223 per square foot.

Recently renovated, Parkway Pointe is less than one mile from Sun Trust Park, the future home of the Atlanta Braves. It sits at the northeast quadrant of the intersection of Cobb Parkway and Cumberland Boulevard.

FCA Partners acquired the asset. Eastdil Secured represented the seller, Stockbridge Capital. 

“Parkway Pointe offers us the opportunity to acquire another Atlanta shopping center in an extremely high quality, infill location,” says Albert Lindemann, managing partner of FCA.  “The center's highly accessible location surrounded by permanent demand drivers including SunTrust Park, 18 million square feet of office space and Cumberland Mall, combined to make this investment opportunity quite compelling. And the road infrastructure improvements currently underway along with the rapidly increasing residential density within walking distance of the property, are also driving attributes.”

Parkway Pointe serves several dense and affluent neighborhoods, including Buckhead, Vinings and other submarkets poised for future growth. Long-term tenants include AMC Theatres, Main Event Entertainment, Taco Mac, Copeland's of New Orleans, Pier 1 Imports and Roam. 

Only two units ranging from 12,000-18,000 square feet are available. FCA is seeking junior box retailers to complete the tenant line-up. Lindemann says, “The property's 30,000 square feet of available space is well-positioned due to the current scarcity of class A junior box space available in the Cumberland Galleria submarket.”

Parkway Pointe is easy to get to from Cobb Parkway and Cumberland Boulevard, with immediate access to Interstate 75. Within a five-mile radius, the residential population exceeds 200,000 with an average household income of over $90,000. The area also has a large daytime population thanks to 18 million square feet of office space within two miles. About 1,100 luxury, multifamily units have been recently delivered or are under construction within walking distance of Parkway Pointe.

"FCA is bullish on Atlanta,” G. Win Kelly, principal and director of acquisition at FCA. “We continue to look for retail investment opportunities preferably in dense, in-town locations with relatively high barriers to entry as these locations are seeing the most residential growth due to the multi-family upswing. Retailers recognize that and want to be in those areas. With strong job and population growth and a limited supply of new space, we're seeing declining vacancies and increasing rental rates in these urban submarkets.”

While only the second retail acquisition in Atlanta for FCA following Buckhead Exchange on Peachtree Road, the firm's predecessor organization, Faison Enterprises, has been active in metro Atlanta for decades. 131 Ponce (280-unit multifamily project completed in 2014), 100 Ashford Center North (160,000-square-foot office) and Peachtree Ridge (160,000-square-foot office) are among the other local FCA properties.