GI Partners has acquired a data center at 4905 North Point Parkway in Alpharetta for approximately $253 million, nearly 300% above its 2022 purchase price.
The 185,000 square foot data center was sold by Lincoln Rackhouse and Principal Asset Management, who purchased the facility for $63.3 million just a year prior.
The remarkable appreciation in value is indicative of the rising demand for data center capacity, which has driven vacancy rates for similar colocation facilities close to zero, as noted in a JLL midyear data center report.
Despite the increasing demand, the pipeline for new construction is expected to provide little relief for buyers.
Currently, 73% of the 8 gigawatts of data center capacity under construction is already pre-leased.
According to JLL, data center developers have added over a gigawatt of capacity in the Atlanta area since the beginning of 2024.
The data center at North Point Parkway, which had a reported capacity of 7 megawatts in 2022, is also poised for expansion, with the campus able to accommodate a total capacity of 30 megawatts, as per REBusiness Online.
In another significant real estate transaction, Insignia LLC has purchased Paces West, a 646,000 square foot office complex in Cobb County, for $21.75 million, translating to $34 per square foot.
This sale represents a steep discount from the $119.5 million price tag that sellers Farallon Capital Management and an LLC associated with CP Group paid in 2019.
The decision to sell came after Piedmont Healthcare’s lease at Paces West expired, accounting for nearly 40% of the building’s total leasable area.
Piedmont has since relocated to 271 17th St. in Atlantic Station.
In Midtown Atlanta, Core Spaces is proposing a new development that involves the demolition of The Cheetah Lounge adult club at 877 Spring St.
Plans for the site include constructing a 27-story student housing tower, comprising 532 units to accommodate more than 1,400 beds, alongside 6,500 square feet of retail space on the ground level.
A 119-space parking deck is also part of the development plan, which will be reviewed by Atlanta’s Midtown Development Review Committee on Oct. 14.
Jack Braglia, a long-time manager at The Cheetah Lounge, confirmed the property is under contract, signaling the end of the club’s long-standing operations.
First opened in 1989, the club was left to a family trust upon the passing of its owner, Bill Hagood, in 2020.
Braglia commented on the impending closure, noting the transformation of Midtown and acknowledging that such changes were always on the horizon.
Additionally, Hutch Development LLC secured a $149 million bond from Develop Fulton to realize their mixed-use project at 5746 Campbellton Road.
Dubbed Sandtown Village, the planned development will include 288 apartments, 74 single-family homes, and 58 townhouses, along with 137,000 square feet of commercial space on a 58-acre site.
The land was acquired for $3.8 million in October 2024, according to Atlanta Business Chronicle.
Meanwhile, Atlanta BeltLine Inc. has unveiled a renewed vision for Murphy Crossing, the long-anticipated redevelopment of the former Georgia State Farmers Market site adjacent to the Atlanta BeltLine Westside Trail.
The updated plans propose building 750 residential units and 285,000 square feet of commercial space, which is expected to include light industrial facilities.
This application marks Atlanta BeltLine’s initial move toward developing the site since a partnership with Arizona’s Culdesac Inc. and Atlanta’s Urban Oasis Development fell through in 2024.
BeltLine officials are aiming to secure development partners and funding for the project, targeting a potential delivery date in 2034.
In a separate development, Hotel Equities has taken on the management of the Hyatt Regency Atlanta Perimeter at Villa Christina, a 182-room hotel situated within the Perimeter Summit mixed-use area off Interstate 285.
Insignia LLC owns the hotel.
In personnel news, Colliers has appointed Andrew Healy as senior vice president for its hospitality practice division.
Healy’s role will focus on hotel investment sales under Vice Chair Mark Owens, bringing valuable experience from his previous position as vice president at CBRE’s hotels platform, where he originated $3 billion in loans, equity placements, and recapitalizations.
Additionally, Partners Real Estate has acquired Seven Oaks Co. in a move to strengthen its development capabilities in the Southeast, although detailed terms of the deal remain undisclosed.
Bob Voyles, Randy Holmes, and Andrew Pearson of Seven Oaks have become equity partners with Partners, which also acquired Seven Oaks’ management operations led by Chris Breeden.
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