Hunt Real Estate Capital provided a first mortgage bridge loan to finance the acquisition of an office property located in Decatur, Georgia.
755 Commerce Plaza is a 90,735 square-foot, 10-story, suburban office building that is situated on a 0.31-acre site. The property was constructed in 1966 with some renovations completed in 2017-2018 by the seller, including a lobby renovation, new building directory, and elevator upgrades. The land size consists primarily of the building footprint and includes no on-site parking. There is a long-term parking agreement with the neighboring building for a total of 216 available spots.
“The loan will secure the acquisition of this asset and provide just over $600,000 so the new owner can implement capital improvement work on-site,” noted James Kelly, Director at Hunt Real Estate Capital. “The borrower plans to complete all capital expenditure work within the first year of ownership and will work to lease-up to a stabilized occupancy.”
Improvements will consist of interior renovations, including fresh paint, ceiling tiles, lighting, and new carpet/tile, as well as restroom renovations on floors two through nine. Planned exterior upgrades include paint, new awnings, and repairs for the roof, the windows, and the fire pump.
“The borrower is a seasoned real estate professional with over 18 years of experience in commercial leasing, acquisitions, sales/dispositions, and advisory services,” added Kelly. “Over the course of his career, he has sold a variety of office properties and is known for his hands-on approach to the day-to-day aspects of managing properties. We were pleased to partner as the finance entity on this deal.”
Decatur is the DeKalb county seat and is located 6.5 miles east of Atlanta. The Atlanta economy is expected to strengthen this year, and the metro area will be a top performer in the South and nationally. Longer-term, the presence of multiple growth engines and strong demographics give Atlanta an edge, and job and output gains are expected be above average.
The local neighborhood has continually experienced strong demand. 755 Commerce is located 1.5 blocks from MARTA and 2 blocks from the town square and county courthouse. The commercial development in the area is also located along the primary traffic arteries and consists of neighborhood shopping centers, banking facilities, automobile service facilities, restaurants, numerous single-tenant commercial facilities, and other uses.