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ATLANTA-CB Richard Ellis Investors, on behalf of its Strategic Partners US 5 fund, has acquired Northcreek Office Park, a 532,916-sf, four building office complex in Buckhead from Hines. The buildings are currently 90% leased, with significant tenants including Sprint, Yahoo! Inc. and Skanska. Terms of the deal were not disclosed.

CBRE plans to re-market the buildings after it implements capital improvements such as roof replacements, HVAC and electrical updates, and surface parking repairs. The company also plans to build a conference center within the complex and maintain a recently renovated fitness center. Each of the eight-story buildings, located at 3715 Northside Parkway along Interstate 75, underwent renovations in 2005, including new brick facades, landscape improvements and elevator and ADA compliance upgrades.

“Atlanta is a blue-chip market with an economy that is still expanding and outperforming the nation, and our forecasts for tenant demand continue to be positive,” Mike Burrichter, principal, CBRE Strategic Partners US, said in a release. “The acquisition of this quality office property with some vacancy and near-term rollover at a significant discount to replacement cost is consistent with the Strategic Partners US 5 office repositioning strategy.”

The Buckhead submarket of Atlanta reports an 11.8% vacancy rate with an average rental rate of $23.35 per sf, according to Marcus & Millichap second-quarter reports. The firm predicts that ongoing development will cause vacancy rates to rise almost two percentage points by the end of the year. Grubb & Ellis reports the submarket has almost two million sf of office space in the pipeline, with negative 92,432 sf of absorption in the last quarter.

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