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A new office investment fund is entering the Atlanta market with plans to renovate a Peachtree Street building in Midtown.
New York-based Crestlight Capital, which launched in March, recently purchased 730 Peachtree, an 11-story, 217K SF building that is home to the headquarters of Kabbage Inc. The terms of the deal were not disclosed.
Crestlight Managing Principal John Coury said the loft office — which is already 90% leased — was attractive to the firm not only given its Midtown location and Peachtree Street address, but also its proximity to Tech Square, just a few blocks away. The firm tapped Lincoln Property to lease the building.
“We're big believers in the Southeast because of population and job growth trends,” Coury said.
Midtown itself is a strong bet for an office play. Even with nearly 2M SF of new office space under construction in the market, leasing is still strong and rental rates are still rising, according to a report from Colliers International.
Coury said the firm plans to renovate the entrance area and signage and connect it better to Peachtree Street for an “overall sense of place,” including possible thematic tie-in to The Fox Theatre, which is a block south on Peachtree. Crestlight expects to release renovation plans in the next 60 days or so, he said.
Coury, who most recently managed more than $6B in office assets with Blackstone, which included buildings in Atlanta, founded Crestlight with a dual investment strategy. The venture targets both urban infill office projects like 730 Peachtree or “high-quality suburban assets” in what he sees as high-growth secondary and suburban markets in the eastern half of the United States, such as Minneapolis, Chicago, Nashville, Orlando and Tampa, he said.
“I just think there's an opportunity to buy in the suburbs,” he said.
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