5755-5775 Peachtree Industrial Boulevard
Atlanta, GA
ACQUIRED
Mary 2013
SQUARE FOOTAGE
180,000
TYPE OF BUILDING
Office, Lab, Production
Cambridge Hanover acquired this three building, 170,000 square foot institutional quality portfolio in May of 2013 from the California State Teachers Retirement System (CalSTRS). At purchase, the property, which is located in Norcross, GA, was 92% leased to two tenants, ADVA Optical Networking, a German-based telecommunications vendor, and Suniva, a solar panel manufacturer. This asset presented a solid opportunity for strong investment returns due to the fact that it was substantially leased, located in a desirable submarket of Atlanta, and featured quality design and construction. Despite these positive factors, the investment also had significant inherent risk since one of the tenants that occupies more than 50% of the portfolio was a venture capital backed company in an unstable business sector. Additionally, both leases were set to expire at the same time, leaving the possibility of three completely vacant buildings should both tenants elect not to extend their leases. In order to mitigate these risks, Cambridge Hanover successfully implemented a plan to extend and stagger the lease terms of the two tenants, including an expansion by Suniva into the remaining vacant space and the construction of a 10,000 square foot addition. The property is currently 100% leased.
