An affiliate of real estate private equity giant Apollo Real Estate Advisors has paid $196 million for more than a dozen suburban Atlanta office buildings. The 15-building, 1.7 million sq. ft. portfolio was owned by office REIT CarrAmerica Realty Corp. The sale price translates into roughly $12 million per office building, and theâ€™s hefty square footage marks it one of the largest office transactions in Atlanta this year. The combined vacancy on the portfolio is roughly 80%, according to CarrAmerica.
"The sale of CarrAmerica's suburban Atlanta portfolio demonstrates our continued focus on our core markets as we allocate the capital from this portfolio into newin those markets,â€ť says CarrAmerica Chief Investment Officer Karen Dorigan
The office buildings are located in three suburban Atlanta submarkets: Central Perimeter, Peachtree Corners and Northwest/I-75. The largest single concentration of office space â€” 724,000 sq. ft. â€” is located in the Perimeter district.
â€śThis portfolio fits squarely into our investment strategy of buying quality assets located in major markets where we have both good current income and solid appreciation potential,â€ť says James Ryan, CEO of Ryan Advisors. Ryanâ€™s firm bought the portfolio on behalf of Apollo.
VEF Advisorsâ€™ Chief Investment Officer Howard Huang projects that the Atlanta economy will benefit from a strong job market in the coming years. â€śWe see this transaction as an opportune time to invest in Atlanta,â€ť says Huang.