Adventus Realty Trust (“Adventus”) is pleased to announce it has acquired two six-story Class A LEED certified office buildings (“Milton Park”, or the “Property”) in the North Fulton submarket of suburban Atlanta, Georgia for consideration of US$57 million.
Centrally located within the prosperous North Fulton submarket, the neighborhoods surrounding Milton Park boast the strongest demographics in metro Atlanta with a highly-skilled and well-educated workforce where the population has grown 10% since 2010 and is expected to grow an additional 7% in the next five years.
“Milton Park marks the third acquisition in suburban Atlanta this year, expanding the geographical diversification significant to the strength of the Adventus portfolio,” commented Rod Johnston, President and CEO of Adventus. “With this acquisition, Adventus owns approximately 850,000 square feet in Atlanta, representing 21% of the overall Adventus portfolio.”
Darcy Brabbins, COO of Adventus, added, “Milton Park is located off the Georgia 400 freeway and is highly-accessible to the executive neighborhoods and expanding residential and retail communities in the North Fulton submarket. Furthermore, over the next five years it is expected that contract rents for in-place tenants at Milton Park will expire well below market rates, providing the opportunity to grow income through the renewal or replacement of existing tenants.”
Located in Alpharetta, Georgia, Milton Park consists of two office buildings totaling 319,945 leaseable square feet, and was purchased for US$57 million, or US$178/sf. The Property is 88% leased with an average lease term of 4.1 years. Based on a 3-year average net operating income, the Property was acquired at a cap rate of 7.7%.
The debt financing for the Property was initiated by JP Morgan which provided US$39.9 million of non-recourse first mortgage financing on a 5 year basis at a fixed interest rate of 4.94% and no principal payment amortization for the first 2 years.
Adventus is a Canadian based private Real Estate Investment Trust (REIT) and is focused on US income producing commercial real estate, primarily in the suburban office markets of Chicago, Illinois and Atlanta, Georgia. For more information on Adventus including our team, corporate strategy, photo gallery, details of our portfolio and press releases, we invite you to visit our website at www.adventusrealty.com.
Cautionary Statements Regarding Forward-Looking Statements
This press release may contain forward-looking statements with respect to the REIT and its operations, strategy, financial performance and financial condition, as well as with respect to the previously disclosed acquisitions and future acquisitions of properties. These statements generally can be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “plan”, “forecast”, “expect”, “intend”, “would”, “could”, “if”, “may” and similar expressions. The actual results and performance of the REIT and the acquisitions discussed herein could differ materially from those expressed or implied by such statements. Accordingly, readers should not place undue reliance on forward-looking statements. These cautionary statements qualify all forward-looking statements attributable to the REIT and persons acting on its behalf. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, changes in interest rates, competition and changes in securities or other laws or regulations or the application thereof. The cautionary statements qualify all forward-looking statements attributable to the REIT and persons acting on its behalf.
Unless otherwise stated, all forward-looking statements speak only as of the date of this press release. Except as required by applicable law, the REIT specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
ADVENTUS REALTY TRUST
By its Trustee: ADVENTUS REALTY SERVICES INC.
Per: Rodney B. Johnston, FCPA, FCA
President and Chief Executive Officer