TerraCap Management Acquires Cobb Corporate Center & Northwoods Commons for $27,600,000

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PR Newswire: Original Source

ATLANTA, July 27, 2020 /PRNewswire/ — TerraCap Management LLC, a privately held investment firm with its headquarters in Estero, Florida, announced today the acquisitions of Cobb Corporate Center in Marietta, GA and Northwoods Commons in Norcross, GA for $27,600,000. The two properties combine for a total of eight single-story office/flex buildings totaling 297,000 leasable square feet and are strategically located in two of northern Atlanta fastest growing submarkets.

TerraCap originally anticipated the acquisition to close earlier this year, however, challenges from the COVID-19 outbreak elongated the acquisition process. “The pandemic started picking up momentum while discussing terms with the seller,” said Steve Good, Partner and TerraCap’s National Director of Acquisitions. “Then the capital markets practically ceased to exist for most of March and April. TerraCap and Seller quickly recognized we were in a difficult environment and decided working closely together while being flexible was necessary for the transaction to occur.”

Cobb Corporate Center, currently 80% occupied, is located along I-75 and Franklin Gateway, providing high visibility and easy access. Northwoods Commons, currently 53% occupied, is well-located on Peachtree Industrial Boulevard, which provides direct access to I-285 and I-85. The two properties together combine for 73% occupancy and have value-add potential through the lease-up of vacant space and the increase of rents to market.

Matt Stewart, Partner and TerraCap’s Director of Asset Management, said, “Since 2016, TerraCap has acquired over 1.4 million square feet of single-story suburban office space in Atlanta. Cobb Corporate Center and Northwoods Commons are part of our thematic value-add strategy around single-story office buildings in rapidly densifying suburban submarkets. These assets are located in well performing submarkets where single-story rents are as much as 30% below multi-story office rents. Like our other single-story office properties, we will invest heavily in enhanced curb appeal and visibility with new signage, landscaping improvements, and completing move-in ready ‘Spec Suites’ to increase the value of the remaining vacancy.”

The seller was represented by Tom Shafer and John Hinson of CBRE-Atlanta. Bridge Debt Strategies Fund Manager provided debt financing for TerraCap, with assistance from the CBRE Atlanta debt team. Lincoln Property Company was hired for the leasing assignment as well as the property management.