CBRE Global Investors Puts 7000 Central Perimeter On The Block

A global real estate investment giant is pruning one of its Atlanta assets after pushing gross rents up almost $10/SF.

Courtesy: CBRE
7000 Central Park In Sandy Springs

CBRE Global Investors is listing 7000 Central Park, a 424K SF tower in the Cox Enterprises corporate campus in Central Perimeter, for sale after beefing up its rent rolls in recent months.

It has been nearly three years since CBRE Global purchased 7000 Central Park for more than $85M from Parkway Properties. During that time, the investment firm grew occupancy — thanks in part to co-working provider Industrious, which leased nearly 30K SF — and pushed up gross rents from an average of $26/SF to as much as $34/SF, Yowell said. Yowell declined to say what price CBRE Global expects to fetch for the building, now at more than 80% leased, with Cox Enterprises using 38% of the building.

CBRE Global also pumped in more than $2M to renovate the lobby and other parts of the building. Los Angeles-based CBRE Global has tapped CBRE Vice Chairman Will Yowell, Executive Vice President Justin Parsonnet, Senior Vice President Jay O'Meara and Senior Associate Ryan Reethof to market the tower.

CBRE Global repositioned the tower to better compete with Atlanta's newer stock of office towers, Yowell said, adding 7000 Central Park will be marketed especially toward institutional investors, who prefer core office properties. That said, there is still room to raise rents.

“The plus component is the additional lease-up that potentially could occur at rates higher than what we 'pro forma'd' in our offering,” he said.

This is not CBRE Global's only suburban office investment. In December, the asset management arm of CBRE with more than $100M in assets under management, purchased three office buildings at Concourse Corporate Center — home to the famed King and Queen buildings — for $145M, the Atlanta Business Chronicle reported.

And, in a similar strategy to 7000 Central Park, CBRE Global is spending additional capital to update those investments.

CBRE Global also is bringing 7000 Central Park to market during a time when investor demand for office properties in Atlanta — especially suburban office — is strong.

“A robust economy supporting improving rents attracts investors to Atlanta's office market,” Marcus & Millichap officials said in a recent report.

Both private capital and local investors are especially active in buying office buildings in the northern end of Metro Atlanta, including Central Perimeter, officials said in the report.

“Investors in search of upside potential will seek assets with near-term lease expirations,” officials said in the report. “A 15% increase in asking rents over the last three years offers these buyers upside valuation increases by renewing leases at market rents.”

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