Will a 75% Full Building Sell in CP?
As Central Perimeter's office continues to heat up, SDM Partners is taking 200 Ashford Center North to market – even with vacancy.
We got our hands on an investment summary (aka “teaser”) for the 158k SF Dunwoody Class-A office building that's been sent to prospective investors. SDM--led by Steve Martin (right, with Transwestern's Kevin Markwordt)--tapped Cushman & Wakfield to market the 75% occupied building. Both parties were unavailable for comment. SDM picked up the asset in 2012 for $12.7M.
The gambit may be a good one. In Central Perimeter, there are very few big blocks of contiguous space; fewer than 20 locations have 30k SF or more, according to a recent Colliers International study. As C&W highlights in the marketing package: “In-place rents still below market in a quickly escalating rental rate environment." Current asking rents are $22.50--up a dollar in the past year, even with 30k SF still vacant.
Cushman & Wakefield's sales team--David Meline (pictured), Stewart Calhoun, Samir Idris and Casey Masters--has demonstrated there's investor demand for suburban office projects this year. The team helped Taylor & Mathis sell TownPark Ravine, a 367k SF Kennesaw office complex to America's Capital Partners for $55M ($150/SF). The team also helped Ackerman & Co sell Premier Plaza, a two-building, 350k SF office project also in Central Perimeter for $162/SF, despite it being only 76% leased.