In 2003, a Hines team, led by Bob Voyles with GE Capital, purchased Ashford Perimeter, a 288,000-sqaure-foot office building for $123/square foot. Ashford Perimeter is strategically located at the corner of Ashford Dunwoody Road and I-285 in the Central Perimeter District, Atlanta’s largest submarket. The six-story building, which was originally completed in 1983, had floor plates averaging 48,000 square feet and a large enclosed atrium. Parking for 843 cars is provided in a four-level adjacent garage and 126 additional spaces are provided on a surface lot. The strategy behind the acquisition was to strengthen leasing and take advantage of future GDOT improvements at the adjacent interchange that would enhance accessibility and thereby add value. The building was sold in 2006 in a rising investment market for a substantial profit.
- Favorable Acquisition Price: Purchased asset at 70 percent of replacement cost.
- Value Add Capital Strategy: Completion of capital improvements repositioning the building to Class A.
- Aggressive Leasing: Extended lease term on key tenant leases.
- Local Market Expertise: Secured commitments from GDOT and the local county. Assisted Perimeter CID to make major I-285 interchange road improvements, directly benefitting the property.
- Well-Timed Market Sale: Sold to Behringer-Harvard in 2006 for $147/square foot.
Stephen Hoover, Former Asset Management Leader – Northeast, GE Capital
“Bob Voyles and his team identified a great value-add acquisition in the Atlanta Central Perimeter market. Their knowledge and skill in operations, leasing and redevelopment work were instrumental in completing challenging base building renovations in a timely manner and driving value through lease extensions and new leases.”