Landmark Properties has made a significant move by acquiring the Northcreek office complex, allowing the company to become its own landlord and facilitating the growth of its Atlanta operations.
This acquisition is notable as it occurs amid a trend of declining office property values post-pandemic, showcasing the challenges faced in the commercial real estate sector.
“Landmark is not in the office business, but we prefer to own our own space, and this acquisition aligns well with what I’m looking to personally invest in,” stated Wes Rogers, CEO and chairman of Landmark Properties, in a news release.
The acquisition was first reported by the Atlanta Business Chronicle.
Constructed between 1971 and 1979, the Northcreek offices underwent renovations in the 2000s and currently stand at over 70% leased, as confirmed by real estate services firm JLL.
JLL was responsible for marketing the property for sale and brokering the transaction.
Founded 21 years ago, Landmark Properties has established itself as the largest student housing developer in the United States, managing approximately $15 billion in assets and 72,000 beds.
Initially, Landmark will lease around 9,000 square feet at the Northcreek location, with plans to expand up to 40,000 square feet as its workforce in the Atlanta area, currently at 100 employees, grows, according to Rogers.
In early March, Rogers disclosed ambitious growth plans to expand Landmark’s operations overseas and into the build-to-rent sector.
Additionally, Landmark is gearing up for a high-profile student housing tower adjacent to the Varsity in Atlanta, which will not disrupt the operations of the fast-food establishment.
The new project could accommodate up to 2,235 beds, potentially making it one of the largest residential towers in the city.
Rogers expressed his confidence in the location during a March 3 interview, stating, “If it wasn’t such a great location, I’m not sure we’d be comfortable building so many beds.
But we feel like this is a great place to make a good long-term bet.”
The acquisition of Northcreek adds nearly 537,000 square feet of workspace to Landmark’s portfolio, positioning the company strategically during a period when other office parks have sold at substantial discounts.
For instance, Atlanta-based Cousins Properties made headlines last summer for acquiring Midtown’s Proscenium tower at a staggering 43% discount through a joint partnership.
In another notable transaction, the Atlanta Braves recently purchased Pennant Park, a 34-acre suburban office complex near Truist Park, for $93 million, just a $6 million premium over its last sale in 2016, despite significant development in the surrounding area of the Battery.
Northcreek last changed hands in 2016 for $101.5 million, according to Fulton County property records.
Regent Partners, based in Atlanta, has owned and operated the property since 2016 and will continue as the property manager and leasing agent while also relocating its corporate office to Northcreek.
Rogers concluded, “This space not only supports growth in our current operations but also lays the foundation for future corporate expansion — most of which we anticipate happening in Atlanta.”
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