Atlanta Buckhead Office Trades for Discount on 2016 Price

The sale of a Buckhead office campus shows that even well-positioned office property isn’t immune to trouble in Atlanta’s office market.

Northcreek Office Park in Buckhead traded for $77.9 million, a 20 percent haircut since its last trade for $101.5 million in 2016, the Atlanta Business Journal reported. JLL had the listing. The drop in price accounts for an acre of the property sold previously for $550,000.

The price works out to $145 per square foot.

A joint venture of Atlanta-based student housing developer Landmark Properties and the family office of its chairman, Westlake Capital, purchased the property at 3715 Northside Parkway using a $68.5 million loan from Acore Capital Mortgage. It sits on 40 acres.

The 537,000-square-foot, four-building office park is more than 70 percent occupied, JLL said. The new owner plans to update the property’s common spaces.

Distress has been mounting in Atlanta’s office market, where 23 percent of securitized debt backed by office properties is delinquent, the Atlanta Journal-Constitution reported in March. Of the country’s biggest cities, Atlanta ranks seventh for this metric. The balance of distressed debt in the city is $2.1 billion.

The city’s office vacancy was 25.2 percent at the end of 2024, Partners Real Estate reported. An expected drop-off in deliveries could bring that rate down. The office construction pipeline has contracted in Atlanta. In the fourth quarter, 709,000 square feet of space was under construction, compared to 2.6 million square feet at the end of 2023.