Sumitomo Corporation of America plans to unload the iconic Atlanta Financial Center Complex in Buckhead with a loss of $ 78 million.
Atlanta Financial Centers that may be trading with Nightingale Properties.
Based in New York Nightingale Property Agreed to purchase across the 915KSF glass-covered office complex Georgia 400 For $ 182 million in off-market transactions Subordinates under the direct control of commercial real estate..Sumitomo 2016 Hines Property CRE Direct reported that it was $ 222.5 million and invested $ 15 million to upgrade the AFC during its tenure.
“Sellers are under” coercion “and” pressure “and investor offers are significant as investors redeem and loans in the second quarter of 2022 are nearing maturity and need to be traded regardless of market conditions. Offers a rare opportunity to get a trophy office at a great discount. To the outline of Nightingale’s offer regarding Crowd Street.
According to the offer, CrowdStreet investors are part of a $ 330 million capital stack, which includes senior debt of $ 185 million, mezzanine debt of $ 60 million, and nightingale capital of $ 8.5 million. included.
“We acknowledge that there are some live offerings on the market, but we don’t comment on the products on the market,” said Cary Brazeman, a spokeswoman for Crowd Street.
Nightingale authorities did not respond BisnowRequest for comment.
Nightingale says the AFC has great potential despite recent retreats, including efforts by Buckhead to leave Atlanta. Cool the outlook for economic development..
The largest five tenants of the complex have been in the property for an average of over 30 years, and current rents are lower than the rents the tenants are currently paying on the market. Nightingale is undertaking an expected increase in rent of $ 42 per SF, or 23.5% from new leases.
Senior Director of Acquisition of Nightingale Will HattonLeading the AFC offering webinar at CrowdStreet told future investors that the current landlord already has a 50,000 SF intent or offer to rent with a tenant. Truist is AFC’s largest tenant at 265KSF, followed by Morris Manning According to the provided documents, Martin of 134K SF, Starr Indemnity of 62K SF, North American Electric Resistance Corp. of 59K SF, Foy & Associates of 49K SF. Currently, this property has 196KSF vacancies.
“We don’t own real estate yet and we’re already seeing a lot of leasing activity,” Hatton told future investors at a webinar on June 2. “We feel very well isolated from all kinds of uncertainties. Even if the recession slows rent growth a bit, rents will be cheaper than our competitors,” he said. ..
The planned purchase was made by Truist, one of AFC’s banner tenants, in the securities sector with 1,000 employees. battery Atlanta Trois Torr Park of Cobb CountyHouse Atlanta Braves.. Atlanta Journal-Constitution previously reported The Truist secures the 250KSF to a new office building with batteries.
Nightingale said in an offer that he had negotiated a three-year lease extension with Truist and gave the landlord time to pre-sell the space after the bank giant moved out.Hatton said a nonprofit Hub404 Maintenance plan Develop Hub404, A park with a cap in Georgia 400 starting in front of AFC. This creates more interest and allows landlords to pay up to $ 50 or $ 60 per SF rent.
“The benefits aren’t unlimited, but they’re very powerful,” says Hatton. “Because it will be a mini, it will be a complete game changer for all of the backheads High line.. “
According to CrowdStreet, the investment fund will be paid by July 8.