Investors have suddenly turned their eyes
to an oft-overlooked office submarket: Cumberland/Galleria. In recent weeks, we've seen a slew of buildings trade there, from Circle 75
to Overlook III. The most recent sale: Brookwood Investment Group and Noro Management have picked up Lakewood II, a 123k SF office building
there from Parkway Properties for an undisclosed sum. We spoke with Walker & Dunlop's Hagan Dick
(who arranged the non-recourse financing
for the acquisition) as to why the Cumberland/Galleria market is suddenly in investors' spotlight (who are also finding willing lenders for office buildings in Atlanta, a major no-no
in the Great Recession). Activity
has picked up among tenants, and space in many submarkets—Buckhead, Midtown and Central Perimeter—are at a premium
. That's a recipe for rising rents
. And investors know this. "I think lenders are just starting to buy into that story
," Hagan says.
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