Lincoln Rackhouse, Partner Sell Alpharetta Data Center: The Atlanta Deal Sheet
An Alpharetta data center sold for nearly 300% more than its 2022 purchase price.
GI Partners paid $253M for 4905 North Point Parkway, a 185K SF data center, from Lincoln Rackhouse and Principal Asset Management, according to documents filed with the Georgia Superior Court Clerks' Cooperative Authority database.
In 2022, Lincoln Rackhouse, a division of Lincoln Property Co., and Principal Asset Management purchased the data center for $63.3M.
Lincoln’s Tony Bartlett declined to comment. GI Partners didn't respond to messages seeking comment.
The sale comes as demand for data center capacity has pushed vacancy for similar colocation facilities to nearly zero, according to a JLL midyear data center report.
The pipeline of new construction offers little relief for buyers. Seventy-three percent of the 8 gigawatts of capacity under construction is already preleased.
Data center developers added more than a gigawatt of capacity in Atlanta since the first half of 2024, according to JLL.
The data center at 4905 North Point had a reported 7 megawatts of capacity in 2022, and the campus can expand to 30 MW of total capacity, REBusiness Online reported.
SALES
An affiliate of Insignia LLC bought Paces West, a 646K SF office complex in Cobb County, for $21.75M. The price for the two-building complex is $34 per SF, the Atlanta Business Chronicle reported.
That price marks a steep discount. The sellers, California-based Farallon Capital Management and an LLC tied to CP Group, purchased Paces West in 2019 for $119.5M.
The sale comes after Piedmont Healthcare’s lease at Paces West expired. That lease accounted for nearly 40% of the total leasable square footage for the building, according to Morningstar Credit. In April, Piedmont moved to 271 17th St. in Atlantic Station.
DEVELOPMENT
On Oct. 14, Atlanta’s Midtown Development Review Committee will hear of Core Spaces’ plans to tear down The Cheetah Lounge adult club to make way for a 27-story student housing tower at 877 Spring St., according to the committee’s agenda.
The developer is proposing to build 532 units for more than 1,400 beds, as well as 6,500 SF of retail space at street level, according to the application. Plans include a 119-space parking deck.
Jack Braglia, a longtime manager with the adult club, told the Atlanta Business Chronicle that the property was under contract and that the sale would lead to its closure.
The club first opened its doors in 1989 under the ownership of Bill Hagood. When Hagood died in 2020, he left the property and the club operations to a family trust, The Atlanta Journal-Constitution reported at the time.
“It’s incredible what Midtown has become,” Braglia told the ABC. “This is something that was out of my hands. I kind of figured this day would come.”
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On Oct. 9, Hutch Development LLC obtained a $149M bond from Develop Fulton, the economic development arm of Fulton County, to develop a mixed-use project at 5746 Campbellton Road. The development will have 288 apartments, 74 single-family homes, 58 townhouses and 137K SF of commercial space, the Atlanta Business Chronicle reported.
The proposed development, dubbed Sandtown Village, will sit on 58 acres that Hutch purchased for $3.8M in October 2024, according to the ABC.
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Atlanta BeltLine Inc. revealed its updated vision for Murphy Crossing, the long-planned redevelopment of the former Georgia State Farmers Market site adjacent to the Atlanta BeltLine Westside Trail.
The nonprofit group is planning for 750 residential units and 285K SF of commercial space, including light industrial space, according to an application filed with the Georgia Department of Community Affairs. The agency reviews development plans that will have a regional impact on infrastructure.
The application marks Atlanta BeltLine’s first step to develop the site since a partnership with Arizona-based Culdesac Inc. and Atlanta-based Urban Oasis Development fell apart in 2024, the Atlanta Business Chronicle reported.
BeltLine officials said it would seek development partners and capital for the project in 2026, according to SaportaReport. The project is expected to deliver in 2034, according to the application.
ASSIGNMENTS
Hotel Equities obtained the management assignment to operate the Hyatt Regency Atlanta Perimeter at Villa Christina, a 182-room hotel located in the Perimeter Summit mixed-use campus off Interstate 285.
Atlanta-based Insignia LLC owns the hotel.
PERSONNEL
Colliers hired Andrew Healy as senior vice president for its hospitality practice division, according to a press release. Healy is tasked with focusing on hotel investment sales under Vice Chair Mark Owens.
Healy most recently served as vice president at CBRE’s hotels platform, where he helped to originate $3B in loans, equity placements and recapitalizations.
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Partners Real Estate acquired Seven Oaks Co. to enhance its development arm in the Southeast. Terms of the deal were undisclosed.
Seven Oaks' Bob Voyles, Randy Holmes and Andrew Pearson were named equity partners with the firm. Partners also acquired Seven Oaks’ management business, which was led by Chris Breeden.
