A joint venture involving Boca Raton, Florida-based real estate investment company CP Group and San Francisco-based investment firm Farallon Capital Management has acquired a three-property portfolio from Franklin Street Properties Corp., CP Group announced this week.
The portfolio consists of 17-story buildings One and Two Ravinia Drive in Dunwoody and 15-story One Overton Park in Cumberland, with the three office properties totaling more than 1.3 million square feet and having a combined appraised value of more than $215 million, according to respective county property records. Pricing details for the deal have not been disclosed.
“We are pleased to have been able to execute on this off-market opportunity and expand our Atlanta portfolio with three institutional-quality assets,” CP Group Partner Chris Eachus said in a statement. “As the economy and the office market continue to recover following the pandemic, the ability to acquire and add value to these well-known buildings presented both a well-timed and promising opportunity.”
The new ownership plans on upgrading lobbies and multi-tenant corridors for each of the three assets, CP Group said in its announcement. At 1 and 2 Ravinia Drive, the company said it will implement its flexible workspace line named worCPlaces, building out more than 53,000 square feet of turn-key “Spec Places” ranging from 1,500 square feet to 10,000 square feet. Leasing for the two-building property, which has office tenants such as T-Mobile and Prudential Financial, will be led by Eric Ross, Sabrina Gibson, and Steward Thrash of CBRE.
Located along I-75 at 3625 Cumberland Boulevard, One Overton Park will have leasing efforts led by Kevin Driver, Billy Graddy, and Ben Hautt of Stream Realty. It is occupied by tenants including Randstad USA.
The three properties were picked up by Massachusetts-based Franklin Street Properties in a series of transactions between 2006 and 2015. The company acquired One and Two Ravinia Drive for a total of about $130 million in 2012 and 2015 and One Overton Park for $85 million in 2006, according to county property data.
CP Group’s joint venture acquisition brings its metro Atlanta office assets under management to a total of about 4 million square feet. Formerly known as Crocker Partners, the company manages a total portolio of more than 14 million square feet, it says.
“These buildings hold immense hidden value that we plan to unlock and enhance through strategic renovation and hands-on management,” CP Group Senior Vice President Scott Barr said in a statement. “The location is incomparable, and we look forward to reintroducing these renowned buildings to the market.”
The investment also marks the third from Farallon Real Estate Partners III, a fund that Farallon closed in 2020 with more than $1.2 billion of committed capital.
Farallon was founded in 1986 by billionaire and former presidential candidate Tom Steyer.