TerraCap Management, a privately held investment firm with its headquarters in Naples, Florida, announced today the sale of Northwoods Commons, a 101,000 square foot, three-building single-story office/flex park located in Norcross, GA.
TerraCap acquired Northwoods in July 2020 and immediately began working on repositioning the property. TerraCap invested in new exterior paint, updated landscaping, new signage, and new roofs. TerraCap capitalized on these improvements and signed several new leases to raise the property’s occupancy from 53% to 84% in 12 months.
“Single-story product has performed well by our metrics and in our target region in the past few years, and Northwoods Commons was no exception. This property built upon the thesis of buying single-story assets in strategic locations with lots of potential. The exterior improvements that were implemented really helped the curb appeal and put the property in a prime position to attract new tenants,” said Robert Witt, Asset Manager at TerraCap Management in a statement. “The Lincoln Property team capitalized on the improvements and were able to complete 50,000 square feet of leasing, of which 30,000 square feet were new leases. The result was that we were able to complete our business plan in 18 months.”
Albert Livingston, TerraCap National Director of Asset Management and Partner, commented, “While physical occupancy from office users has been down throughout the COVID-19 pandemic, TerraCap has tracked higher occupancies and positive net absorption within the suburban single-story office/flex buildings in our portfolio. Northwoods certainly benefited from the trend of users gravitating to this product type.”
TerraCap Management considers thematic factors such as business formation, employment growth and population growth on a market-by-market basis, as most metros and submarkets have different economic-based industries and therefore move through their economic cycles differently.