X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ATLANTA-Cobalt Capital Partners has purchased a four-building, 636,442-square-foot industrial portfolio here from Denver-based DCT Industrial for an undisclosed price. According to a midyear Grubb & Ellis research report, pricing on a per-square-foot basis has stood at $51.40 for product sold over the last year in that market.

The class A buildings, located at 4125 Buford Highway and 3270, 3280 and 3290 Summit Ridge, are 100% leased and include a small amount of office space. Major tenants include PBD Inc. in 173,360 square feet, Masonite Corp. in 100,800 square feet and National Gypsum Co. in 142,800 square feet.

CB Richard Ellis executive vice presidents Frank Fallon and Chris Riley, along with associate Brian Budnick, represented DCT Industrial in the transaction. “They owned the property for a number of years and decided it was time to sell,” Fallon tells GlobeSt.com. “This was a very clean transaction—an all-cash deal,” he says, adding that core transactions such as this one are still happening in Metro Atlanta despite the economic slowdown and capital markets freeze.

Lew Friedland, managing partner at Irving, TX-based Cobalt, says the properties allowed the company to expand its Atlanta-area portfolio. Through two private REITs, Cobalt owns over 3.5 million square feet in Atlanta and 24 million square feet across the country in 15 markets, he tells GlobeSt.com. DCT’s portfolio fit the REITs’ focus on light industrial property, described as multitenanted space under 250,000 square feet in size with a low percentage of office space.

“We bought this portfolio at an attractive price,” he reveals. “We tend to acquire property below replacement cost, and this was at a fairly large discount to replacement cost and lower than recent comparable sales in the area.” Friedland tells GlobeSt.com that despite the slowed investment sales market, the REIT manager still has access to equity and debt capital. “We’re being very selective and buying high quality properties, such as these, that have the opportunity to add value as leases roll over in the next few years.”

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?

GlobeSt

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.