Triple Net No More?
The latest acquisition by the kings of triple-net is anything but typical. Newburger-Andes' David Andes and Steve Farrar tell us they recently purchased two multi-tenant industrial buildings as a value-add play: Greer Circle, an 88k SF flex warehouse in Stone Mountain, and Park Central Boulevard, a 50k SF flex warehouse in the Snapfinger Industrial Park.
Here's 4611 Greer, purchased from Selig Properties. David tells us that while these projects primarily cater to local mom-and-pop tenants, they're not being built anymore. “The rents don't justify it when you look at the cost to construct,” David says. And unlike Newburger-Andes' typical M.O. the past few years—buying triple-net, free-standing, single-tenant retail buildings all cash—the duo bought this portfolio with a small amount of leverage from their private investors, he says.