Adventus Realty Trust (“ART”) by its Trustee, Adventus Realty Services Inc. (“ARSI”) is pleased to announce it has acquired a campus-style office development featuring four, 4-story, Class A buildings (“TownPark Commons”, or the “Property”) in the Kennesaw Town Center submarket of Atlanta, Georgia for consideration of US$73.25 million.
TownPark Commons is located in the high-growth Kennesaw submarket of northwest Atlanta. The Property is conveniently positioned near Kennesaw State University, and is situated between two interstate highways providing easy access from all points of the Atlanta metro area. TownPark Commons is 98% occupied, and has a stable and dedicated tenant base with a weighted average lease term of 8.2 years. Over the last 20 years the Property has averaged 92% occupancy and existing tenants have an average tenure of 15.2 years.
“TownPark Commons marks another acquisition for Adventus Realty Trust, and we are very pleased to make a significant acquisition in the Kennesaw submarket of suburban Atlanta,” commented Rod Johnston, President and CEO of ARSI. “In January 2016, Adventus Realty Trust acquired the Barrett Lakes property in Kennesaw, and since that time, we have seen first-hand the desirable office market fundamentals in this submarket. Northwest Atlanta is one of the stronger office markets in metro Atlanta, and in the Kennesaw submarket there has been no significant construction over the past few years, allowing for upward pressure on rentals rates with reduced vacancies.”
The debt financing for the Property was initiated by JP Morgan which provided US$47.6 million of non-recourse first mortgage financing on a 5 year basis at a fixed interest rate of 4.86% with no principal payment amortization over the term of the loan.