Adventus Realty Trust (“Adventus”) is pleased to announce it has acquired two six-story Class A LEED certified office buildings (“Milton Park”, or the “Property”) in the North Fulton submarket of suburban Atlanta, Georgia for consideration of US$57 million.
Centrally located within the prosperous North Fulton submarket, the neighborhoods surrounding Milton Park boast the strongest demographics in metro Atlanta with a highly-skilled and well-educated workforce where the population has grown 10% since 2010 and is expected to grow an additional 7% in the next five years.
“Milton Park marks the third acquisition in suburban Atlanta this year, expanding the geographical diversification significant to the strength of the Adventus portfolio,” commented Rod Johnston, President and CEO of Adventus. “With this acquisition, Adventus owns approximately 850,000 square feet in Atlanta, representing 21% of the overall Adventus portfolio.”
Darcy Brabbins, COO of Adventus, added, “Milton Park is located off the Georgia 400 freeway and is highly-accessible to the executive neighborhoods and expanding residential and retail communities in the North Fulton submarket. Furthermore, over the next five years it is expected that contract rents for in-place tenants at Milton Park will expire well below market rates, providing the opportunity to grow income through the renewal or replacement of existing tenants.”
Located in Alpharetta, Georgia, Milton Park consists of two office buildings totaling 319,945 leaseable square feet, and was purchased for US$57 million, or US$178/sf. The Property is 88% leased with an average lease term of 4.1 years. Based on a 3-year average net operating income, the Property was acquired at a cap rate of 7.7%.
The debt financing for the Property was initiated by JP Morgan which provided US$39.9 million of non-recourse first mortgage financing on a 5 year basis at a fixed interest rate of 4.94% and no principal payment amortization for the first 2 years.