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ALPHARETTA, GA-A locally based real estate partnership has acquired a 54,491-sf class A office building at 6435 Shiloh Rd. in the Corporate Campus at the Meadows for $8.5 million, or $155 per sf. The acquisition price equated to an approximately 7.5% going-in capitalization rate.

New York City-based Sonnenblick Goldman arranged the non-recourse, 10-year fixed-rate financing for the acquisition. Sonnenblick secured more than 96% leverage for the borrower in the transaction, with a $6.9-million senior loan provided by New York City-based Dillon Read and a $1.25-million mezzanine loan provided by New York City-based RCG Longview, which is an affiliate of hedge fund Ramius Capital Group.

Dave Karson, of Sonnenblick Goldman, tells GlobeSt.com that the seller acquired the property in partnership with GE. “This was the one stable asset in a portfolio,” he says. “The seller decided to sell it to help capitalize the balance of the portfolio.”

The building is 100% triple-net leased to AXA Advisors for a term of seven years, which expires in 2013. AXA Advisors is rated AA- by Standard & Poor’s and Aa3 by Moody’s. “The tenant had a termination right after five years, which made the high-leveraged financing more challenging,” Karson says. “There’s a great appetite for net-leased property, both on the finance and the acquisition side, and we were able to achieve an interest-only loan at a very attractive spread while significantly limiting reserves.”

Constructed in 1998 for AXA Advisors, the brick building contains floor-to-ceiling glass curtain wall and contains a data center, corporate training center, cafeteria and executive office space. “Given AXA Advisors’ significant capital investment in the building and its strategic location as a training center, we believe the tenant will extend their lease and reduce residual risk for both the borrower and lender,” Karson says.

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