This Week's Atlanta Deal Sheet: 8West Lands Rare Office Refinancing
The developer of 8West in Midtown has refinanced the construction loan on the Ford Motor Co.-occupied project.
Morning Calm Office Finance, a joint venture of Morning Calm Management and an unnamed investment manager, provided The Atlantic Cos. with a $59M loan to replace construction debt that was about to mature on the mixed-use development in Upper Westside Atlanta, Morning Calm said in a press release.
The building was developed by a joint venture of Atlantic Capital Properties and Gateway Ventures Real Estate, which have since merged to form The Atlantic Cos., Atlantic founder Jim Meyer told Bisnow Thursday. The 193K SF, nine-story building at the corner of Howell Mill Road and Eighth Street delivered in 2020.
Trammell Crow Residential developed a 264-unit apartment building next door, which is not subject to the refinancing deal, Meyer said.
Rubenstein Mortgage Capital provided the original $70M construction loan for the project, Meyer said. The building is 40% occupied by tenants including Ford’s innovation lab, Studio Architects, B.L. Harbert International, the Dalton Agency and Atlantic’s offices.
FINANCING
Brook Farm Group secured a $68M construction loan and preferred equity investment for a 388-unit apartment community in Covington. First Horizon Bank and Trustmark Bank provided the construction loan, while SilverCap Partners made a preferred equity investment, according to a press release.
Brook Farm, along with Emory Equity, is planning to develop The Sinclair at Callaway Farm next to Covington Town Center off Interstate 20. CBRE Executive Vice Presidents Shawn Rosenthal and Jason Gaccione and Associate Vice President Jake Salkovitz brokered the financing.
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Landeavor and Lamb Properties secured a nearly $27M construction loan for Rosebud Place, a 139-home community off Rosebud Road in Loganville. The five-year, floating-rate loan was provided by an unidentified regional bank. JLL Managing Directors Matthew Putterman and Chris Knight, Senior Managing Director Danny Kaufman and Director Ware Shipman put together the financing.
LEASES
Local animation company Bento Box Entertainment signed an 11K SF lease at 1375 Peachtree St., the 410K SF office building formerly known as Pershing Point Plaza. Cushman & Wakefield Senior Director Porter Henritze, Managing Director Will Porter and associate Melanie Garlock represented the landlord, FullG Capital. Savills Vice Chairmen David Rubenstein and Kelly Givens brokered the deal for Bento Box.
SALES
RealCo purchased 3550 Engineering Drive, a 101K SF office building in Peachtree Corners, for an undisclosed sum. RealCo is a family-owned company that "has been acquiring commercial properties across the Southeast US since 1980," according to a press release.
The sale closed less than a week after a new tenant, Fleetcor, commenced a new lease at the building for 25K SF, according to the release. The previous owner was a joint venture of Icarus Alternative Investments and Scipio Ventures, according to an Avison Young listing for the building.
Icarus and Scipio spent $2M on renovations after acquiring the building in 2018, according to the release, which added that Fleetcor's lease brought the building's occupancy from 38% to 58%.
JLL Executive Vice President Paul Hanna and Northmarq Vice President Katie Elliott brokered the deal for the buyer, while OnPace Partners Tom Shafer, John Hinson and Chase Mathews represented the sellers.
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Northland purchased 670 Thornton, a 344-unit apartment community in Lithia Springs, from Fogelman Properties for an undisclosed sum. Fogelman and DRA Advisors purchased the property, which was formerly known as Fields Waterford Point, in 2020 for $40.8M.
