Praelium Commercial Real Estate and South Street Partners Acquire Newmarket Business Park in Joint Venture
MARIETTA, Ga. - July 17, 2017 - PRLog -- A joint venture led by Praelium Commercial Real Estate, a Southern California-based commercial real estate investment company, and South Street Partners, a Charlotte, NC-based real estate private equity investment firm, announced the acquisition of Newmarket Business Park, a six-building office park encompassing 471,486 square feet. The 85% occupied property is located between Cobb Parkway and Franklin Gateway, northwest of greater Atlanta in the city of Marietta. Home Depot USA occupies 66% of the property.
"This property is an excellent fit for our national investment strategy. Atlanta is a solid market and the property benefits from a national credit tenant with a long-term lease in place that has already made a significant investment in this location," said Scott G. San Filippo, founding principal of Praelium Commercial Real Estate.
"This region is going through a significant revitalization. The newly-constructed Atlanta Braves stadium, SunTrust Park, is located just a few miles away which is bringing a wide range of new development and amenities to the area," said Will Culp, partner with South Street Partners. "The opportunity to acquire an asset in a dynamic growth market that has already proven to be a draw for corporate tenants made for a compelling risk-adjusted investment opportunity."
The Marietta submarket is already home to a number of corporate tenants, including Home Depot's satellite office space. In addition to the new Braves Stadium and The Battery Atlanta, the Atlanta United Football Club professional soccer team practice complex recently opened within one mile of the business park.
Colliers International represented the owner, in the sale of the park which consists of four, single- story buildings and two, two-story buildings. ACORE Capital, a leading commercial real estate finance company, provided the financing for the transaction, which was arranged through Mark Strauss at Walker & Dunlop.
The new ownership plans to actively market the remaining vacant space in order to stabilize the asset above 90% occupancy. New ownership also envisions a rebranding of the business park to be completed over the following months. Colliers will continue to handle office leasing and property management on behalf of the joint venture.
South Street and Praelium have formed a strategic alliance to pursue commercial and office assets across the U.S. with a specific focus on the Southeast, Midwest and California markets. "Looking ahead, we will continue to source these types of assets across the US as part of our collective investment strategy with South Street. Our teams and experience are a great match," San Filippo added.
About South Street Partners
South Street Partners is a real estate private equity investment, management, and development firm focused on acquiring, managing, and strategically exiting opportunistic and value-add real estate investments across all real estate sectors. Founded in 2009, South Street is headquartered in Charlotte, NC and has approximately $850 million in assets under management. More information is available at www.southstreetpartners.com
About Praelium Commercial Real Estate
Founded in 2015, Praelium is a Southern California-based commercial real estate investment and advisory firm primarily focused on acquiring office assets nationwide. Praelium has invested in over $200 million of office assets over the last 12 months.
About ACORE Capital
ACORE Capital, LP is a commercial real estate finance company focused on originating, acquiring and managing first mortgages, B-notes, mezzanine debt and preferred equity throughout the United States. ACORE, which is an acronym for Alpha Commercial Real Estate, specializes in providing borrowers with customized financing solutions at competitive rates and flexible terms. For investors, ACORE is focused on generating alpha through attractive commercial real estate debt investments coupled with superior risk management. ACORE is led by commercial real estate finance veterans Boyd Fellows, Stew Ward, Chris Tokarski and Warren de Haan. For more information, please visit www.acorecapital.com.