Atlanta’s RG Real Estate Scores Bargain on Foreclosed Office

A suburban Atlanta office property sold for almost half of its previous value.

RG Real Estate acquired the TownPark Commons office complex in Kennesaw for $42 million following a foreclosure, the Atlanta Business Chronicle reported.

The four-building complex spans 350,000 square feet on more than 20 acres off George Busbee Parkway. The price was $120 per square foot, about 47 percent less than the $79 million it was appraised for in April 2021.

The property was part of Adventus Realty Services’ portfolio, the property management company for Adventus Realty Trust, Rick Charlton’s Vancouver-based REIT, which filed for bankruptcy in July 2023. The portfolio was tied to a $350 million securitized commercial mortgage.

The trust representing loan investors foreclosed on Adventus’ metro Atlanta holdings in December, along with the company’s Chicago assets. Together, they totaled 2.2 million square feet of space.

The deal, facilitated by KeyBank National Association on behalf of a trust, closed on Feb. 28, the latest sign of a churning market under pressure.

The complex is 96 percent occupied, according to a JLL brochure. It includes 701 Barrett Lakes Boulevard and 125, 175 and 225 Townpark Drive Northwest.

No major changes are planned for TownPark Commons, RG Real Estate founder and President Ryan Goldstein said, though “small capital improvements” could be made “strategically.”

This acquisition follows RG Real Estate’s purchase of the discounted Overlook I office building in Vinings last November. The firm’s strategy aligns with a broader trend of recalibration in Atlanta’s office sector.

Office sales in the metro area totaled $1.35 billion last year, up from $589 million in 2023, according to CommercialEdge.

Nearly 23 percent of all securitized debt backed by office properties is delinquent, the seventh highest rate out of the top 25 major metro areas in the country, totaling 166 distressed properties and $2.1 billion in distressed debt, according to data from Trepp.

— Judah Duke