Atlanta Medical Office Development Receives $16M Financing

By Evelina Croitoru

371 East Paces

Atlanta—Square Mile Capital Management LLC has announced that the company has arranged a $15.8 million mezzanine loan to finance the construction of a medical office building in Atlanta. The asset is being developed by Atlanta-based real estate development and investment firm The Loudermilk Cos. Cushman & Wakefield is leasing the office building that is slated to come online in 2018

Located at 371 East Paces Ferry Road NE in Buckhead Village neighborhood, the project is one block east of Oliver McMillan’s new $1 billion mixed-use development and is within walking distance from numerous upscale dining and entertaining establishments. In addition, 371 East Paces will offer patients and tenants convenient access to Atlanta’s major hospital campuses, being strategically situated within a perimeter where only five Class A MOBs have been delivered in the past 15 years.

Upon completion, the development project will encompass a nine-story building featuring 109,000 square feet of medical office space, with a fourth-floor surgery center, 12,000 square feet of retail space as well as an attached parking garage. The property is currently 25 percent pre-leased, with the current tenant list including Piedmont Medical Care Corp., Peachtree Dermatology and Kalos Surgical Associates.

“This project will fill a critical need for medical office space in the Buckhead community, as a maturing local population increasingly seeks a full range of convenient healthcare services,” Matthew Drummond, Square Mile principal, said in a prepared statement.”The location is ideal, one block from the Buckhead Atlanta development, allowing residents to take advantage of the Piedmont Healthcare presence.”

Image courtesy of Cushman & Wakefield