An opportunity fund with KBS REIT is buying into the dream that is Central Perimeter.

This story was updated 2/16/17 at 3:45 p.m. with additional information

KBS Strategic Opportunity REIT purchased Crown Pointe, a mid-rise, two-building Class-A project encompassing nearly 500k SF for $83.4M, or more than $168/SF. KBS bought the property from Mass Mutual, according to Databank.

According to filings with the Securities and Exchange Commission, the purchase was funded by funds from unidentified Israeli investors as well as a $62.5M floating rate mortgage loan secured by the property. The loan, with an interest rate of 2.6% over one-month LIBOR, matures by 2020.

KBS' Jeff Rader said the asset's Central Perimeter locale was appealing since it is “evolving into a bustling, 24/7 environment and is considered one of the Southeast's largest employment centers. Central Perimeter has been one of the submarkets that KBS has been tracking." And in particular to Crown Pointe, Rader said the asset is perched in an area that's seen a tremendous amount of development activity.

Therein lies the value-add play for KBS. Crown Pointe has a 72% occupancy rate, but in a market that is tightening for Class A space. With plans to invest capital to spruce up the common areas and other spaces, Rader said the fund is aiming to capitalize on a rising tide.

"With the low supply of new office product we believe that rents will continue to rise and office vacancies will remain low allowing KBS to capitalize on the available space in the buildings," he said.

For KBS Strategic Opportunity REIT, it is the latest asset purchased in Metro Atlanta. In 2013, the fund sold Powers Ferry Landing East for $18.5M. It still owns Northridge Center, a 188,500 SF two-building complex off Roswell Road.

The deal is an early blip in a year many experts say should see lower volumes of office sales in Atlanta after the metro area led the nation in sales volume among secondary cities, as we reported here. And it was among some higher-profile office towers that were on the market in Atlanta this year, including 100 Peachtree and 271 17th St., the BB&T-anchored trophy tower in the heart of Atlantic Station in Midtown.