BALTIMORE--(BUSINESS WIRE)--Alex. Brown Realty, Inc. (ABR) and CIP Real Estate are pleased to announce the acquisition of Perimeter Place Business Park, a 103,419 sf R&D/flex industrial business park located in Atlanta, Georgia. ABR Chesapeake Fund V, a value-add real estate fund sponsored by ABR, invested $3.12 million in the joint venture. Financing for the acquisition was provided by Silvergate Bank.
The six-building portfolio is situated on 8.1 acres located on I-285 in Doraville, a North Atlanta submarket close to Buckhead. Building sizes range from 5,000 sf to 25,000 sf and at acquisition the park was 87% occupied by 30 tenants.
The joint venture strategy includes leasing the remaining vacant space and completing a $700,000 capital improvements program, including roof and HVAC replacements, exterior painting, paving and landscaping, along with modifications to the existing vacant space. CIP Real Estate Property Services, a wholly-owned subsidiary of CIP Real Estate, will perform on-site property management and construction management, as well as reporting and accounting services to the project.
“Perimeter Place boasts a strong location across from the new Assembly Yards project, with direct frontage on I-285 and just north of the I-85 interchange,” said Eric Smyth, Chief Executive Officer and Co-Founder of CIP Real Estate. “We like the Doraville submarket because of its well occupied industrial product, limited new construction and consistent positive space absorption due to its close proximity to the up-scale Buckhead area.”
“CIP is a preferred partner,” stated Tom Burton, ABR’s Senior Managing Director and CIO. “We are confident that their extensive management experience will help increase revenues and ultimately produce a positive outcome for our investors,” added Burton. ABR has acquired 21 properties with CIP since 1998 in California and North Carolina, totaling $330 million in total capitalization.
“The Perimeter Place investment represents another opportunity to partner with CIP--a best-in-class operator,” said John Prugh, Chairman of ABR. “The asset will be positioned to drive strong cash flows and build market value, which should achieve excellent returns for the Fund.”
Alex. Brown Realty, Inc. (ABR) is a privately-owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States. www.abrealty.com
CIP Real Estate (CIP) is a full service real estate investment and management company focused on the acquisition, development and repositioning of office and industrial parks. Founded in 1995, CIP owns and manages more than 5M sf. of multi-tenant industrial, office and business parks throughout California, Nevada and North Carolina. CIP is headquartered in Irvine, California with additional full-service offices in Ontario, California, Las Vegas, Nevada, and Charlotte, North Carolina. The principals and founders of CIP are Eric Smyth and Bob Strom.