Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ATLANTA-New York-based Sterling American Property Inc.’s SAP II Fund and Gateway Management of Atlanta have almost quadrupled their 1997 investment in the seven-story, 217,000-sf 1776 Peachtree office building by selling it to Rahway, NJ-based Denholtz Associates for $19.2 million or about $88.48 per sf.

The Sterling fund and its joint venture partner paid $5.6 million, or $25.45 per sf, eight years ago, according to GlobeSt.com research. The buyers at that time renovated the lobbies, common areas and building systems of the structure to increase its future value.

“Sterling American [initially] purchased this property due to its ideal location in the heart of the Peachtree corridor between Atlanta’s Midtown and lower Buckhead [submarkets],” Adam Sabella, vice president of acquisitions and dispositions for Sterling, says in a prepared statement. “Despite challenging fundamentals in the Greater Atlanta office market, we were able to leverage the asset’s location to fully execute on our business plan.”

The estimated occupancy of the building is 70%, Downtown brokers familiar with the property tell GlobeSt.com. The Atlanta office of CB Richard Ellis Inc. negotiated for the sellers. Denholtz represented itself. Sterling American Property Inc., a 30-year-old firm, is an affiliate of Sterling Equities and American Securities LP.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • 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 © 2020 ALM Media Properties, LLC. All Rights Reserved.