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| Michael Bull |
ATLANTA, GA — Bull Realty
closed the sale of a $3.7 million office park in Stone Mountain, GA, a suburban
Atlanta submarket. The property consists of three fully leased two-story office
buildings totaling 64,033 SF on 5.4 acres.
The property addresses are
5300 Memorial Drive, 778 and 798 Rays Road. The transaction closed on January
25, 2017 for $3.7 million.
This building is
reflective of a growing trend in office space: small suites on flexible leases.
“Office tenants and
landlords are getting more comfortable with flexible, shared and co-working
office space, however, lenders don’t seem to feel the same way,” said Michael
Bull, CEO of Bull Realty.
“The property has been
leased as small suites for many years with a strong occupancy history with a
waiting list. The small suite setup reduces leasing costs and turnover
expenses. Management never moves a wall, HVAC or electrical, which makes it
almost as simple as leasing apartments.”
“Even though this type of
use has become increasingly common, the lenders were uncomfortable with the
short-term leases,” Bull said. “This
leads me to believe that lender guidelines have not caught up with the latest
office use trends. Ultimately, Citizens Trust Bank financed the sale. I expect
that moving forward more lenders will grow accustomed to the reality of office
use today,”
There are 71 tenants
occupying the office park including attorneys, psychiatrists, and other
professionals.
The seller was Memorial
Rays LTD and the buyer was a private equity investor. The plans are to increase
rents and continue to operate as office suites.
The property was marketed
and sold by Michael Bull, CCIM.
For more information
contact Bull Realty at 404-876-1640 or Info@BullRealty.com - Bull Realty, Inc.
(www.BullRealty.com) is a U.S. commercial real estate brokerage and advisory
firm headquartered in Atlanta, licensed in ten states providing acquisition,
disposition, leasing and advisory services.
The firm also produces and hosts
The Commercial Real Estate Show (www.CREshow.com).
For a complete copy of the company’s news release, please
contact:
Melissa Henry
Communications Manager
Bull Realty, Inc.
404-876-1640 x 110
www.BullRealty.com
www.CREshow.com
www.AtlantaPlacesTV.com
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