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ATLANTA-KBS Realty Advisors of Newport Beach, CA has acquired its second metro area office property in the last seven months with the $21.25-million purchase of the 23-year-old, 138,068-sf Overlook I office building on Paces Ferry Road in northwest Atlanta. The Realty Associates Fund IV sold the building for $153.90 per sf.

The property was purchased July 6 but KBS didn’t announced the deal until today, July 28. KBS bought the 503,725-sf Piedmont Center V-VIII in Buckhead in December 2004. The California firm also owns the 91,940-sf Northridge Pavilion III and IV in the Central Perimeter submarket purchased in December 1999.

Arcadis, an engineering firm, occupies 41,645 sf or 30.2% of the entire 89%-leased Overlook I. Other large tenants are Wilson, Brock & Irby, DirecTV and AIM Consulting.

“With vacancy rates at their lowest level in the last three years and rapidly improving absorption levels, we believe that Atlanta will be one of the strongest office markets in the nation,” KBS senior vice president Peter Doherty says in a prepared statement. “We will continue to seek out quality real estate opportunities as this market continues to strengthen.”

A second-quarter analysis of Atlanta’s 126-million-sf office market by Richard Bowers & Co. puts overall vacancy at 17.2% compared to 18.4% in second quarter 2004, as GlobeSt.com previously reported. Net absorption was 203,605 sf, the fifth consecutive quarter of positive absorption. Richard Bowers, a founding principal of Richard Bowers & Co., calls the second-quarter leasing performance “encouraging and steady, if unspectacular.”

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