HAILEY'S COMET BUY

Four years after failing to acquire Roswell Business CenterHailey Realty is getting its chance. It's finally purchased the North Fultonoffice park, well below the basis it would have been back in the day.
 
Johnson Hailey Investments (an affiliate of Hailey Realty) purchased Roswell Business Center, a six-building, 156k SF single-story office park (above) sandwiched between Roswell and Alpharetta. We spoke with Hailey Realty's Jay Young, who took a break from the slopes at Big Sky with his family on Spring Break. ?We tried to buy this property four years ago when it was 92% leased,? Jay says. In hindsight, he's glad the firm didn't because the price then would have been more than double the $6.5M it paid to the property's special servicer LNR earlier this month.
Here's Transwestern's Kevin Markwordt (at a recent CRE event) who brokered the sale for LNR. NAI Brannen Goddard's David Beakrepresented Hailey in its purchase. Kevin says when he got the listing assignment six months ago, there was lots of interest fromvalue-add investors. And Jay says there's certainly upside potential here. Now at 50% leased (from being nearly full in 2007 and 2008), the property is a mix of small office and medical tenants, a mix that will work going forward. Hailey also plans to invest $500k on improvements, including new roofs and signage upgrades and to turn one of the buildings into a loft-style office. ?I don't know if there'll be a market for it or not, but we're gonna try that,? Jay says. Either way, the basis Hailey has entered into this asset will allow it to beaggressive with tenants and brokers in attracting deals, he says.

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