16 Dec STEIN ACQUIRES TWO ATLANTA OFFICE PROPERTIES IN METRO AREA
Sandy Spring’s iconic Northside Tower changes hands.
ATLANTA – Stein Investment Group (Stein Investment) announces the acquisitions of two office properties in metro Atlanta marking its expansion into one of Atlanta’s hottest real estate sectors. The firm’s first major office buy in the region, Northside Tower and East Cobb Office were acquired for a combined $18 million, diversifying Stein Investment’s portfolio that was predominantly retail and self-storage at the time. Situated in the heart of Sandy Spring’s downtown core, Northside Tower was acquired by Stein Investment on Oct. 18 for $13 million along with East Cobb Office Complex in Marietta, Ga. for $5 million this summer. The seller for both assets was Alex Brown Realty, a real estate fund located in Baltimore, Md.
“We see Northside Tower as one of the most under-utilized properties along Sandy Springs’ primary commercial corridor – Roswell Road,” explains Jeff Stein, CEO, Stein Investment Group. “It’s the tallest building in the corridor at nine floors – and will always be – and it’s in the heart of more than $400 million of commercial development currently changing the face, perception and energy of this Sandy Springs core.”
“It is hard to find a submarket with more development underway. It is a low risk, high reward opportunity that we jumped on,” explains Stein. Located at 6065 Roswell Road, Northside Tower features +/- 120,000 square feet of office space primarily catering to smaller tenants. “This significantly mitigates rent exposure to any single tenant and provides a smoother rent roll as leases expire,” states Stein. Approximately 70 tenants comprise the roster with Signature Bank the largest at approximately 9,000 square feet. The property is currently +/- 95% leased.
Stein Investment plans to invest more than $2 million into Northside Tower to continue its relevance in this iconic location. Upgrades include adjusting traffic patterns to improve parking deck access; updating the ground-level facade to enhance the overall pedestrian appeal with a patio and street-level sidewalk access; and improving efficiency and function with energy management systems and modernized elevators, fixtures and facilities.
“Location played a significant factor in our decision to invest in Sandy Springs,” adds Jason Linscott, CIO, Stein Investment. Across Roswell Road, the city of Sandy Springs is constructing a $200 million complex known City Springs, which will include an amphitheater, parks, retail, residential and office complex.
“As with Sandy Springs, East Cobb is another submarket with a history of solid assets and strong returns – the first of many factors that led to our decision to acquire the East Cobb Office Complex,” continues Linscott. East Cobb Office Complex is a 60,000 square-foot, five-building complex at 1000 Johnson Ferry Road along East Cobb’s primary commercial corridor.
Nearly adjacent to Northside Hospital’s 100,000-square foot expansion known as East Cobb Medical Center, the property is 80% leased and prime space for ancillary medical service providers. Existing tenants include: Atlanta Falcons Physical Therapy Centers, Allstate Insurance, Sheffrin Men’s Health and Creative Dentistry.
Stein plans to invest $1 million to better align the property with East Cobb’s architectural and quality standards. Improvements to the façade and landscape as well as the driveway and parking areas are currently underway.
“These two properties add nice diversity to our Atlanta portfolio,” adds Stein. The acquisition of both office properties is a strategic move by Stein Investment to diversify its portfolio following the sale of its multi-family holdings over the past few years.
About Stein Investment Group
Headquartered in Atlanta, Stein Investment Group is a third-generation, private real estate investment firm recognized for its integrity and investment acumen. With over 150 years of combined real estate experience, the firm seeks unique real estate acquisition opportunities throughout the Southeast. The firm’s 2 million-square foot portfolio includes 250,000 square feet of retail, 225,000 square feet of office and over 1.5 million square feet of self-storage facilities. The team is recognized for its ability to respond quickly and capitalize on investment opportunities. For more information, go to SteinInvest.com.