ATLANTA — Macfarlan Capital Partners, in a joint venture with an entity managed by Cole Real Estate Investments, has acquired a Class A trophy office campus leased to AT&T in Atlanta for $225 million. The campus includes the 16-story Midtown I and the eight-story Midtown II, which total 794,110 square feet. KanAm Grund, a German real estate investment company based in Frankfurt, was the seller.
The campus is situated on 7.2 acres and was originally a build-to-suit for AT&T in 2001 and 2002. Macfarlan’s team worked with AT&T to extend its lease for 11 more years. The Midtown I office tower totals 512,101 square feet and the mid-rise Midtown II is 282,009 square feet.
Bryan Larson of Macfarlan says the long-term lease coupled with property’s location in the heart of Atlanta’s Midtown submarket represented a “a great opportunity for Macfarlan to provide its investors with a strong current yield from a trophy asset backed by outstanding credit.”
According to KanAm Grund’s website, the company acquired the two office buildings, located at 754 Peachtree St., in December 2007.
“Cole’s partnership with Macfarlan provided an opportunity to jointly acquire a Class-A asset that meets our disciplined acquisition criteria,” says Thomas Roberts, executive vice president and head of real estate investments for Cole. “With this acquisition, we are able to expand our portfolio of mission-critical office assets leased long term to creditworthy tenants.”
The transaction marks the first time that Macfarlan Capital, a Dallas-based private real estate investment sponsor, has teamed up with Cole, a Phoenix-based acquirer and manager of retail, office and industrial assets.
Chuck Vogel, senior vice president for real estate joint ventures at Cole Real Estate Investments represented Cole. Chris Marshall of Jones Lang LaSalle in Atlanta represented the seller. Mark West, Brandon Chavoya and Coler Yoakam with HFF’s Dallas office represented Macfarlan in arranging debt financing with RBS (Royal Bank of Scotland).
— Rachel Goff