Real estate fund manager TerraCap Management, LLC, has managed the purchase of Chastain Center, a six-building, 301,000-square-foot office park in Kennesaw, Georgia, for $29.1 million. Located on Chastain Road, the property features easy ingress and egress to major roadways and surface parking with four-and-a-half spaces per 1,000 RSF, all set in an attractive, 27-acre office park. At the time of sale, Chastain Center was 67 percent leased. Avison Young represented the seller, a San Jose-based TIC, in the transaction.
TerraCap is already active in Florida, where it has amassed several portfolios of office properties and commercial assets totaling nearly two million square feet.
“With this purchase, we represent nearly 500,000 square feet in the greater Atlanta area; we are opening a satellite office here now,” said Steve Good, a partner at TerraCap. “We see a lot of opportunity to acquire properties in secondary markets as many sophisticated companies relocate to outer areas due to space constraints within the city. We believe this trend will continue.”
Chastain Center marks the company’s second property in the market, following the acqusition of Bailey Park, an office/flex park also located in Kennesaw, in January. Lincoln Property Company (Lincoln) assisted TerraCap in the acquisition of the property, and has been retained to lease and manage the property.
“We are excited to work with TerraCap as they actively seek to expand their footprint with additional acqusitions throughout Atlanta and the Southeast,” said Tony Bartlett of Lincoln. “Our strategic third-party leasing and management services can provide real value for owners and operators who are seeking value-add opportunities, and we believe that our relationship with TerraCap will do just that.”