Northwest Business Center

Atlanta, Georgia

Investment Overview

Avistone is pleased to introduce its latest investment offering, Northwest Business Center located in Marietta (Atlanta), Georgia. The Property represents an opportunity to invest in a 470,971 square foot, high-finish business park in Atlanta’s Northwest Market, located between Franklin Gateway Street and the I-75. Both corridors are currently undergoing a major transformation with public investment, improvements and an influx of high-profile companies.(1)

Investment Terms

  • Acquisition Price: $28,700,000
  • Equity Raise: $13,689,000
  • Minimum LLC Investment: $50,000
  • Preferred Return: 8%(3)
  • Estimated Hold Period: 3-5 Years
  • Projected Yield: See Offering Materials
  • Projected IRR: See Offering Materials
  • Available for 1031 Exchange: Yes

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Investment Strategy

Avistone’s primary objectives are to operate the property efficiently, distribute any available cash flow monthly to investors and create value by increasing occupancy and rental rates over the next several years given the strength of the region’s flex/industrial market. We believe the existing rental rates at the Property – which now average $6.61/sf (on a NNN equivalent basis) – are under market, which, according to Colliers International, average $8.60/sf in Marietta and $9.04/sf in the greater Northwest Atlanta Submarket. To facilitate bringing rental rates to market, we plan to correct various deferred maintenance issues, including roofs, driveways, and renovate exteriors/common areas of the Property, as well as implement a make-ready program for existing vacant suites. We believe a successful execution of our plan will ultimately enhance the property’s net operating income and create the potential for property value appreciation over a 3- to 5-year anticipated investment holding period, although there is no assurance objectives will be realized.

Investment Highlights

  • Location

Strategically located in Atlanta’s dynamic Northwest Market, which includes the newly constructed Atlanta Braves Sun Trust Park, the Battery (a newly constructed residential, office and retail development attached to Sun Trust Park), Home Depot’s National IT Center, Georgia Tech’s Marietta Research Institute, Atlanta United Training Facility and Atlanta’s second IKEA location (now under construction).

  • Growth Driver

Cobb County (Marietta) contributed $500 million from 2011-2015 to enhance the the regional corridor surrounding the Property with plans to spend an additional $750 million over the next six (6) years to improve the area’s infrastructure and traffic flow to attract new businesses to the area.(1)

  • Lack of Competition

Northwest Business Center is being acquired at substantially below its replacement cost, with below market rents in a submarket that has not seen competitive space constructed since 2009.(1)

  • Strength of the Tenant Base

Currently the property is 89.5% leased to 68 tenants representing more than 25 industries, with no single tenant occupying more than 13% of the space. The weighted average length of tenancy is over 7 years and 35% of the net rentable area is occupied by strong national or regional credit tenants, which accentuates the long-term value proposition for the property.
(2)

  • Market Presence and Expertise

The asset will be managed by Avistone Management, LLC, which currently manages 3 similar projects in the Atlanta market representing over 400,000 of flex-industrial space.

Property Details

Square Footage 470,971 SF
Land Area 34.40 Acres
Buildings 12
Units 96
Occupancy 89.5% (68 tenants)(1)
Space Layout 65% Office / 35% Warehouse
Year Built 1982 – 1988
Construction Brick on Block
Clear Height 12′ – 17′

Atlanta, Georgia Market Highlights

  • The greater metropolitan area of Atlanta ranks nationally 5th in population, 4th in population growth, 6th in economy, 3rd in the most Fortune 500 headquarters, and is one of the fastest growing markets in the US with an average growth rate of 1.5% (2011-2016) and an average annual employment growth employment that has outpaced the national average since 2012. Atlanta features a diversified economy and is one of the least expensive major American cities in which to operate a business.
  • The Atlanta industrial / warehouse market has experienced aggressive absorption over the past several years. The industrial market consists of over 675 million square feet, with a current overall vacancy rate of 7.4%. Northwest Business Center is located within the Northwest Atlanta Industrial Submarket, which has a vacancy rate of 6.6% for shallow bay/flex.(1)

Avistone’s Track Record

With a portfolio of over 2 million square feet of flex industrial space located in California, Texas, Georgia, Florida and Ohio, Avistone excels in acquiring and operating stabilized multi-tenant flex industrial properties that deliver investors in place cash flow for distribution and the potential for capital appreciation from increased rents and net operating income, although there is no assurance these objectives will be realized. To date, Avistone has provided its investors an average annual cash distribution of over 8.0%. (8)

To learn more, an Investment Summary is now available to accredited investors along with the full offering documents.

Download Investment Summary


Disclaimers:
1) Colliers International
2) Occupancy as of the 1/31/18. In Year 1, approximately 17.55% of leases are due for renewal
3) The Members will be entitled to receive a preferred return in an amount equal to an 8% cumulative but not compounded annual return on their Net Capital Contributions. The preferred return is paid from cash flow from operations or sale subject to available cash flow
4) The DISCLAIMERS AND LIMITATIONS: This message is intended solely for accredited investors as such is defined in the Securities Act, and is not intended as an offer to sell, or the solicitation of an offer to buy any securities or ownership interests. Past or projected performance does not guarantee or predict future results; all projections and estimates contained herein are subject to change any time without notice. This investment opportunity may not be available in all states. All information contained herein is in summary form, does not purport to be all-inclusive or contain all the information or risk factors a prospective investor needs to evaluate the potential investment opportunity contained herein. Any such evaluation must be considered in conjunction with the final Private Placement Memorandum (the “PPM”); the information contained herein is qualified in its entirety by such and all prospective investors are strongly encouraged to read all “risk factors” in the PPM. Further, some of the initial information provided above contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties, and investors should not rely on them as predictions of future events. Avistone reserves to the right to withdraw this investment opportunity at any time for any reason without liability to any party. Investments in private securities contain a high degree of risk and often have long hold periods. They are illiquid and may result in the loss of principal. Avistone’s strategy may not occur due to numerous external influencers.
5) Commercial real estate contains risk and positive outcomes are not assured.
6) Security transactions administered by WealthForge Securities, LLC, member FINRA | SIPC. WealthForge Securities and Avistone are not affiliated.
7) This page contains forward-looking statements that involve risks and uncertainties. These statements are only predictions and are not guarantees. Actual events and results of operations could differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements are typically identified by the use of terms such as “may,” “will,” “should,” “expect,” “could,” “intend,” “anticipate,” “plan,” “estimate,” “believe,” “potential,” or the negative of such terms or other comparable terminology. The forward-looking statements included herein are based upon Avistone’s current expectations, plans, estimates, assumptions and beliefs that involve numerous risks and uncertainties. Although Avistone believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Property’s actual results may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such differences include, but are not limited to, assumptions pertaining to leasing rates, reimbursements, market vacancy, tenant rollover and retention percentages, capitalization rates and other assumptions which may be inaccurate. Prospective Purchasers of Interests are cautioned not to place undue reliance on any forward-looking statements contained herein. The actual results of the Project may differ significantly from the results discussed in the forward-looking statements.
8) Past performance may not be indicative of future results; there is no assurance that objectives will be met.
9) IMPORTANT NOTICE: The accompanying email transmission is a privileged and confidential communication and is intended to be viewed and read only by the intended recipient. If you are not the intended recipient or its authorized agent, you are prohibited from reading this transmission, and the dissemination, distribution, or copying of this transmission to or by person[s] other than the intended recipient is prohibited. If you have received this communication in error, please notify us immediately by telephone and destroy the original transmission.
10) Diversification does not guarantee returns or protect against loss