In 2006, Seven Oaks Company assisted General Electric Asset Management (GEAM) in the $103 million purchase of the 500,000-square-foot Riverwood 100 office building. At that time, the building was 79 percent leased with substantial rollover risk in upcoming years. Originally delivered in 1989, Riverwood 100 was the highest quality building in the Northwest Atlanta Market, but needed an “operational tune-up” and increased leasing. Seven Oaks addressed both operational and leasing issues immediately. Through strategic relationships with CBRE, and with intensive property management practices, Seven Oaks effectively reduced operating expenses below Northwest Market averages, and leased and renewed over 175,000 square feet, bringing occupancy to over 90 percent. Additionally, Seven Oaks renewed the building’s 150,000-square-foot anchor tenant for ten years at above market economics. Seven Oaks then implemented substantial operational improvements with a special emphasis on “green” strategies. The building received Energy Star Certification in 2008 and LEED Certification in 2010.
Seven Oaks also added additional value to GEAM by reassembling the remaining surrounding undeveloped land, which was part of the original 1988 developer’s masterplan. Seven Oaks created substantial investor value by updating the existing entitlements to allow for 330 multifamily units, 15,000 square feet of retail, and two additional office sites, one of which has been developed into the 300,000-square-foot Riverwood 200, which is delivering in May 2017.
- Aggressive Leasing Strategy: Completed 325,000 square feet of new leases and lease extensions at rates 5 percent greater than market.
- Above Market Tenancy: Building 91 percent leased (10 percent higher than market).
- Operational Efficiency: Below market operating expenses and Energy Star Certification received in 2008.
- LEED Emphasis: LEED Certification received in 2010.
- Investment Value Protection: Renewing existing anchor tenant for ten years at above market economics.
Pamela Beam, VP, GEAM
“Seven Oaks team has been highly effective in helping building ownership navigate through a deteriorating leasing market. Their hands-on approach to building operations and to leasing, coupled with their strategic partnership with CBRE…have been a high “value add” to GEAM over the past several years at Riverwood.”