Investments

REALIZED INVESTMENT

  • LEED Gold, trophy tower built in 2001 and located on Midtown’s prestigious 14th Street
  • Direct visibility and immediate access to I-75/85
  • Qualified for the City’s Opportunity Zone jobs creation tax credit for tenants – significant advantage over its direct competitors

Case Study

Investment Thesis
Capitalize on significant upside potential of a Class A property by re-acquiring a controlling interest at a time when the anchor tenant was relocating, dropping occupancy to 36%. Crocker Partners believed Midtown Atlanta, slow to come out of the recession and perceived as overly concentrated with law firms, was poised for significant growth and transformation. The Company previously owned and sold the asset in 2005, and leveraged its knowledge of the asset and submarket, aggressive leasing efforts and significant physical and service level upgrades to lease the property to 91% and improve the building reputation.

Description 
– 503,000 SF, 24-story LEED Gold Midtown Atlanta office building
– 91% leased to a diverse roster of tenants including Regions Bank, Holland & Knight, Miller & Martin, SalesLoft, Flextronics, and NewSouth Construction
-Acquired at 52% of replacement cost.

Value-Added Opportunity
-Re-leasing of 275,000 SF following the expiration of anchor tenant to law firms, technology companies, financial firms, and 11 “spec” suites.
-Re-position asset to true Class A status with new conference facilities, fitness center, staffed concierge, renovated common areas and café, new FlyWheel Studio and valet parking

Return Metrics
The leveraged Gross IRR was a 32.6% and 2.6x multiple