Middle Market Digest: Early This Week in the Southeast

Early this week in the Southeast saw a Mississippi commercial real estate company expanding nationally and two especially notable deals out of Atlanta.

BY THE NUMBERS

Retail buyers in the $1 million to $10 million tranche are dominating transaction velocity in Atlanta. Drugstores and fast-food establishments remain a popular target, particularly in high-traffic locations in the North Cobb and Gwinnett submarkets. In both areas, cap rates can begin in the mid-5 to low-6% span for quality buildings with national tenants. (Source: Marcus & Millichap)

NEWS & NOTABLES

JACKSON, MS—EastGroup Properties added two new executive officers to serve as senior vice presidents over the Texas and Western regions. Reid Dunbar, formerly a senior vice president with Prologis will serve in EastGroup's Texas region. Ryan Collins, formerly a vice president with Clarion Partners, is opening a Los Angeles office for the company and is serving as senior vice president of EastGroup's Western region.

DEAL TRACKER

ATLANTA—Columbia Property Trust signed a lease renewal and expansion with Regus to occupy 39,643 square feet at One Glenlake Parkway in Atlanta. This lease, together with an additional 7,141-square-foot lease also just signed for the single remaining available suite at the building, takes the recently renovated Central Perimeter office tower to 100% leased. With these agreements, Columbia's entire, 1.7 million-square-foot Atlanta office portfolio, which also includes Three Glenlake and Lindbergh Center, is now 100% leased.

JACKSON, MS—EastGroup purchased Broadmoor Commerce Park in Atlanta for $6.3 million.  The 100% leased, 84,000-square-foot multi-tenant business distribution building resides on 17 acres of land. The company intends to develop an additional 107,000-square-foot distribution building on the site.

ATLANTA—Dilweg Companies snapped up The Pointe. The reported sale price: $46 million The Pointe sits in Central Perimeter's Northridge Road corridor—one of Atlanta's most affluent executive neighborhoods. The 418,000-square-foot, two-building, mid-rise office development is currently 66% occupied. The Pointe counts several blue-chip firms including Cisco, Compass Group, and Ecova among its tenants. Dilweg plans to continue the previous owner's recent capital investment, which included lobby renovations and elevator modernizations, by investing approximately $3 million in upgrading building systems, common areas, and tenant amenities.

ATLANTA—CBRE Group's Debt & Structured Finance team secured $61.9 million in financing on behalf of Carter and PCCP for 715 Peachtree, a 10-story, 318,450-square-foot class A office building located in the heart of Midtown Atlanta. Jonathan Rice and Jeff Ackemann of CBRE's Atlanta office led the capital markets efforts for the three-year bridge loan provided by KKR & Co. The loan will enable Carter to pay an existing loan used for renovations and refurbishment to the property, and provides for tenant improvements and leasing capital.

DORAVILLE, GA—Cohen Financial, a division of SunTrust Bank and a national real estate capital services firm, announced Dan Rosenberg, managing director, and Matt Terpstra, vice president in the Chicago office, secured $14.5 million acquisition financing for Doraville Plaza in Doraville, a suburb of Atlanta. The property is a 190,000 square-foot retail complex anchored by Burlington Coat Factory. Cohen Financial secured a 10-year, fixed rate loan with a 30-year amortization schedule with Citigroup Global Markets. The borrower is The Equinox Group, a commercial real estate owner/operator located in Atlanta and a longtime Cohen Financial client.

Early this week in the Southeast saw a Mississippi commercial real estate company expanding nationally and two especially notable deals out of Atlanta.

BY THE NUMBERS

Retail buyers in the $1 million to $10 million tranche are dominating transaction velocity in Atlanta. Drugstores and fast-food establishments remain a popular target, particularly in high-traffic locations in the North Cobb and Gwinnett submarkets. In both areas, cap rates can begin in the mid-5 to low-6% span for quality buildings with national tenants. (Source: Marcus & Millichap)

NEWS & NOTABLES

JACKSON, MS—EastGroup Properties added two new executive officers to serve as senior vice presidents over the Texas and Western regions. Reid Dunbar , formerly a senior vice president with Prologi s will serve in EastGroup's Texas region. Ryan Collins, formerly a vice president with Clarion Partners, is opening a Los Angeles office for the company and is serving as senior vice president of EastGroup's Western region.

DEAL TRACKER

ATLANTA—Columbia Property Trust signed a lease renewal and expansion with Regus to occupy 39,643 square feet at One Glenlake Parkway in Atlanta. This lease, together with an additional 7,141-square-foot lease also just signed for the single remaining available suite at the building, takes the recently renovated Central Perimeter office tower to 100% leased. With these agreements, Columbia's entire, 1.7 million-square-foot Atlanta office portfolio, which also includes Three Glenlake and Lindbergh Center, is now 100% leased.

JACKSON, MS—EastGroup purchased Broadmoor Commerce Park in Atlanta for $6.3 million.  The 100% leased, 84,000-square-foot multi-tenant business distribution building resides on 17 acres of land. The company intends to develop an additional 107,000-square-foot distribution building on the site.

ATLANTA—Dilweg Companies snapped up The Pointe. The reported sale price: $46 million The Pointe sits in Central Perimeter's Northridge Road corridor—one of Atlanta's most affluent executive neighborhoods. The 418,000-square-foot, two-building, mid-rise office development is currently 66% occupied. The Pointe counts several blue-chip firms including Cisco, Compass Group, and Ecova among its tenants. Dilweg plans to continue the previous owner's recent capital investment, which included lobby renovations and elevator modernizations, by investing approximately $3 million in upgrading building systems, common areas, and tenant amenities.

ATLANTA—CBRE Group's Debt & Structured Finance team secured $61.9 million in financing on behalf of Carter and PCCP for 715 Peachtree, a 10-story, 318,450-square-foot class A office building located in the heart of Midtown Atlanta. Jonathan Rice and Jeff Ackemann of CBRE's Atlanta office led the capital markets efforts for the three-year bridge loan provided by KKR & Co. The loan will enable Carter to pay an existing loan used for renovations and refurbishment to the property, and provides for tenant improvements and leasing capital.

DORAVILLE, GA—Cohen Financial, a division of SunTrust Bank and a national real estate capital services firm, announced Dan Rosenberg, managing director, and Matt Terpstra, vice president in the Chicago office, secured $14.5 million acquisition financing for Doraville Plaza in Doraville, a suburb of Atlanta. The property is a 190,000 square-foot retail complex anchored by Burlington Coat Factory. Cohen Financial secured a 10-year, fixed rate loan with a 30-year amortization schedule with Citigroup Global Markets. The borrower is The Equinox Group, a commercial real estate owner/operator located in Atlanta and a longtime Cohen Financial client.