A North Texas investor just made its first play in Atlanta with the acquisition of a three-building office complex in the northwest part of the city.
Fort Worth-based Woodside has purchased the Shadowood Office Park on Powers Ferry Road for $14 million, the Dallas Business Journal reported. The property is near the Atlanta Braves’ stadium and the Battery Atlanta mixed-use hub.
The price marks a 30 percent discount from the $22.3 million that the seller, Atlanta Property Group, paid for the site in 2017. To facilitate the purchase, APG obtained a $19 million loan that was set to mature in December 2024 after one extension.
The property’s drop in value is reflective of broader challenges facing commercial real estate, including stubborn remote-work trends and high interest rates. Struggling office assets with upcoming loan maturities often give landlords no choice but to sell at a discount, especially given the tight lending climate that’s stymied deals across the country since last year.
However, the Cumberland-Galleria area, where Shadowood is located, has emerged as a bright spot in Atlanta’s office sector. The submarket was one of the city’s top performers last year, with 109,000 square feet of positive net absorption in the fourth quarter, according to Colliers. That trend is expected to continue this year.
APG opted to sell “in conjunction with its lender,” while assuring stakeholders of its financial strength and commitment to delivering favorable returns.
The Shadowood buildings, totalling just under 200,000 square feet, were built between 1975 and 1998. APG renovated the complex, with upgrades to the lobbies, common areas and mechanical systems, during its time as landlord, a company spokesperson said.
The buildings’ occupancy ranges from 73 and 80 percent, the outlet reported, citing CoStar data. Major tenants include food production solutions company Inter-Tech and real estate services organization MountainSeed, leasing a combined 37,700 square feet.
Woodside, led by managing partner Mark Horrell, specializes in acquiring assets at discounted rates, managing value-add properties and subsequently selling stabilized assets to traditional real estate investors. In February, the firm had raised $42.5 million from 33 investors for a pooled investment fund.
—Quinn Donoghue
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