CP Group JV Buys Atlanta Office Campus

Buckhead Centre. Image courtesy of CP Group

CP Group and the Private Real Estate Group of Cohen & Steers Capital Management Inc. have become co-owners of Buckhead Centre in Atlanta, after having acquired the 169,000-square-foot asset in a joint venture transaction. The partners purchased the two-building property at 2970 Peachtree Road N.W., sited in the city’s prestigious Buckhead neighborhood, from The Simpson Organization for an undisclosed amount.

Located on a 4-acre site amid a bevy of exclusive amenities, Buckhead Centre consists of two well-maintained, 1960s-era, mid-rise office towers, as well as a restaurant building and a parking structure. The property last changed hands in 2016, when Simpson acquired it in a $25.8 million portfolio transaction, according to CommercialEdge data.

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Buckhead Centre. Image courtesy of CP Group

“Buckhead Centre is in an irreplaceable location in the heart of Buckhead. That is why it has been fully leased for decades and what made it attractive to value-add investors like us,” Chris Eachus, partner at CP Group, told Commercial Property Executive. “It was a competitive process, but we look forward to enhancing these assets and the tenant experience.”

CP Group plans to capitalize on what it describes as Buckhead Centre’s “surban” appeal, or the comfort of a suburban lifestyle combined with the dazzle of urban-like amenities. The company will invest more than $10 million in renovations and added features that will improve the tenant experience at Buckhead Centre.

In addition to serving as property manager at the office campus, CP Group will also act as operating partner for the joint venture. Stream Realty Partners’ Steve Devinney, Billy Graddy and Jack Teken will spearhead leasing activity at Buckhead Centre.

Potential for a repeat performance

CP Group was highly acquisitive in 2021, snapping up more than 5 million square feet of office assets in the Southeast and Southwest U.S. in transactions totaling approximately $1.1 billion. Among the company’s most notable deals last year was the joint venture purchase of the 1.2 million-square-foot CNN Center in downtown Atlanta in a sale-leaseback transaction with WarnerMedia. Additionally, CP Group entered new territory in 2021, making its first purchase in Denver with the joint venture acquisition of the 593,500-square-foot Granite Tower in a $204 million deal with KBS.

Like 2021, 2022 may very well be a billion-dollar investment period for CP Group. Eachus said, “We remain bullish on the office market and plan to maintain the momentum into the new year and beyond.”