Granite Properties Picks Up Vinings Office Building

Granite Properties is offloading a suburban Atlanta asset, signaling renewed investor appetite for well-positioned properties in the struggling asset class.

The Dallas-based firm sold 100 City View for $50.4 million to OA Development, which is based in Atlanta, the Atlanta Business Chronicle reported. At roughly $198 per square foot, the price lands well above metro Atlanta’s second-quarter average of $136, Avison Young data show, but still a third of what it would cost to build new.

OA bought the 254,000-square-foot office building with a $32.5 million loan with Grant Street Funding, according to a company release.

Built in 2000 and recently upgraded with $7 million in improvements, the 11-story building is 91 percent leased. Murata Electronics, the U.S. arm of a Japanese manufacturer, anchors the tenant roster at 3330 Cumberland Boulevard South East, with a 50,000-square-foot commitment inked last year. In all, 26 tenants fill the building, which sits less than two miles from the Battery Atlanta, the Braves’ mixed-use playground.

Cushman & Wakefield brokered the sale, with a team led by Samir Idris, David Meline and Burch Mixon, who also handled Pennant Park’s sale to the Braves earlier this year.

The purchase aims to capture the momentum of the Cumberland and Galleria office submarket, which logged leasing activity 24 percent higher than pre-pandemic, according to marketing materials. The submarket’s performance bucks the trend of sluggish absorption across metro Atlanta .

Josh Videlefsky, a partner at OA Development, said the firm is leaning into “well-located, high-performing assets as institutional capital remains sidelined.”

It’s a sharp contrast to some of OA’s other holdings. The firm is still grappling with underperforming “zombie” spaces such as 100 Ashford Center in Dunwoody, eyed for possible demolition. But 100 City View fits the profile of a durable, income-producing office, partner Brian Granath said, citing “predictable income and opportunity for capital appreciation” as the market stabilizes.

The deal also adds to a streak of activity in Atlanta’s office sales market, which saw transaction volume jump 277 percent quarter-over-quarter in the second quarter, though still far below the boom years of cheap debt.

— Eric Weilbacher