Dec. 5, 2019 – TerraCap Management LLC, a privately held investment firm based out of Estero, Florida, announced today the sale of Chastain Center for $46,100,000. The six-building, 303,000 square foot single-story office portfolio is located within the growing Atlanta suburb of Kennesaw. The Kennesaw submarket is amongst the strongest performing markets in the Atlanta metro area, boasting a large professional and medical workforce. The property is also within walking distance to Kennesaw State University. With over 30,000 students, KSU is among the largest and fastest growing universities in the state of Georgia.
Matt Stewart, Director of Asset Management for TerraCap commented, “By our measure, Chastain Center was a great value-add investment for us with solid tenancy and an excellent location. After investing significant capital to upgrade the property’s curb appeal, our leasing team was able to execute new leases and raise occupancy. We are very pleased with the investment execution and proud of the results achieved by our leasing and investment sale teams.”
TerraCap purchased the property for $30,179,000 in January 2016 as one of their early acquisitions in the Atlanta metro area. While Chastain Center was 63% occupied at acquisition, TerraCap made numerous operational improvements and capital investments into the property during their ownership. TerraCap also retained the leasing team of Matt Davis, Jeff Henson and George Gwaltney with Lincoln Property Company, and during their tenure, they executed nearly 132,000 square feet of renewals and over 116,000 square feet of new leasing, which ultimately raised occupancy to 86% at the time of sale with over seven years of remaining lease term in place.
“We are very pleased with the job our team in Atlanta did in repositioning the asset,” said Steve Good, Partner and Director of Acquisitions with TerraCap. “We feel the property is in a great location with a strong tenant roster with credit and extended lease term and that it will perform for years to come, and we wish new ownership the best.”
Tom Shafer and John Hinson of CBRE in Atlanta represented TerraCap on the sale. Lincoln Property Company represented TerraCap on both leasing and management.