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After two years in the hunt, a South Florida investment firm is making its Atlanta office debut in Camp Creek.
Savlan Capital purchased the six-building Camp Creek Business Center from Duke Realty for $33.2M, or $111.25 per SF. JLL Managing Director David Tennery and Director Noël Steinfeld brokered the sale.
Savlan CEO Zusha Tenenbaum said Camp Creek Business Center's location — in the heart of the Fulton Industrial submarket and close to Hartsfield-Jackson Atlanta International Airport — made it a compelling purchase, even though the project is 79% leased. He cites the Camp Creek's base of houses and apartments, as well as its affordability, which is a lure for companies seeking new employees.
“For these people to drive to Downtown or Midtown, it's a good 45 minutes,” Tenenbaum said.
Savlan was drawn to the Atlanta office market due to both its population and job growth in recent years, but it took two years to find what the firm views as an ideal investment given its conservative underwriting, Tenenbaum said.
Tenants at the project include Jaguar Land Rover Automotive North America, Primerica and Keller Williams as well as a host of federal government agencies. The diversity of tenants also should keep the project somewhat recession-resistant, Tenenbaum said.
“None of our tenants [lease] more than 20% of our space,” he said. "And we try to keep it this way throughout our entire portfolio."
The value-add goal is, of course, to lease up the property. That may be easier said than done. The South Atlanta office market is nearly 20% vacant, among the highest rates in Metro Atlanta, with 30K SF absorbed so far this year, according to a recent JLL report.
Higher-quality office space in the market performs better: Vacancies in the Class-A realm in South Atlanta are 11%.
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