Dilweg Shopping for More in ATL
Fresh from their buy of Centennial Tower in Downtown Atlanta, we chatted with Durham-based Dilweg Cos' Anthony Dilweg and Jerry Banks (here) about the local market. The firm purchased the 650k, 36-story tower last month from Jackson Corporate Real Estate for a little more than $70M. And even though the tower was built in the 1970s, Jerry says the open floor plates and “dramatic views” of Downtown's skyline—as well as access to transit—have made it marketable to area companies. It currently is home to both Turner Broadcasting Systems and the exec offices for the Atlanta Dream and the Atlanta Hawks.
While Anthony—a former quarterback for the Green Bay Packers—admits the Downtown submarket “is a little tricky,” and can be “rough on a lot of landlords,” the firm sees Centennial as a solid value-add play. “We think the nuance to the building we can bring will attract a lot of tenants,” he says, adding that Dilweg plans to undergo a $7M renovation campaign.
Atlanta is high on the investment list for Dilweg, Anthony says. “We've looked at the Atlanta MSA since probably 2006,” he says, attracted by what he saw as solid job growth. But, unlike other commercial real estate investors in recent years, Dilweg has been shopping more in the suburbs, where prices are certainly lower. Most recently, the firm picked up Royal Centre Two, Three and Four in Alpharetta, and The Paddocks (here), a 100k SF mid-rise in Johns Creek. “There's been debate about the suburban ring for some time. But we think there are pockets of opportunity there,” he says.