Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ATLANTA-The Atlanta office of Advantis Real Estate Services Co. has added 1.2 million sf in 24 hours to the company-wide total leasing/managing portfolio of 30 million sf.

It’s the biggest deal Advantis has pulled off to date among its Southeast clients. It also is the largest leasing/management contract of the year in the Southeast, several Atlanta brokerage houses that track these transactions tell GlobeSt.com.

Jones Lang LaSalle’s Atlanta office is subcontracting its leasing/management assignment from property owner Koala Realty Holding Co. of New York to Advantis for an undisclosed fee.

However, area brokers tell GlobeSt.com the average standard office leasing/management fee nationwide is about $4 per sf. That would make JLL’s gross contract with Koala valued at about $11 million per year.

If Jones Lang LaSalle splits its fee evenly with Advantis, that would mean a gross annual fee to Advantis of about $5.5 million, area brokers tell GlobeSt.com.

John Padgham, managing director, Jones Lang LaSalle, Atlanta, did not return a phone call Friday from GlobeSt.com.

But in a prepared statement, Padgham says he did the deal with Advantis because JLL has “an established relationship with Advantis” and is “impressed by their strength in local market knowledge and talent.”

Advantis will be using its expertise at the 700,000-sf Koger Center West End, Richmond, VA; the 250,000-sf Koger Center at the Crossroads, Raleigh, NC; and the 233,000-sf Koger Center Norfolk, Norfolk, VA.

All three properties are believed to be at least 90% occupied. Advantis already is providing property management services to JLL in Raleigh.

Bruce G. Ford, vice president, management services, Advantis negotiated the deal with Jones Lang LaSalle and will head the leasing/management team on the 1.2 million-sf portfolio.

Jones Lang LaSalle apparently will be leasing and managing the 30-building, 1.5 million-sf Koger Center in northwest Miami by itself since the Sept. 21 prepared statement from Advantis made no mention of the Florida property. The Miami Koger was part of the four-property leasing/management package owner Koala gave Jones Lang LaSalle.

According to a 1997 Koger Equity annual report, Koala Realty Holding Co. Inc. is a co-mingled pension trust fund. Morgan Guaranty Trust Co. of New York is the fund’s trustee. The investment manager is J.P. Morgan Investment Management Inc., also of New York.

Officials at Jones Lang LaSalle and Koala couldn’t be reached at GlobeSt.com’s publication deadline to learn why the leasing/management deal was done at this time and who previously handled the assignment for the owner.

(Please see related story on the Miami page.)

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.