Investors Pour Millions Into Armour Yards District
Investors continue buying in to the overhaul of Atlanta’s Armour Yards district.
The Ardent Cos. purchased three industrial buildings in the project for $14.7 million, or about $129 per foot. Ardent bought the properties from DH Pace, the parent company of Overhead Door Co.
Overhead Door will move out of the buildings at 279 Ottley Drive, and 221 and 219 Armour Drive by the fourth quarter. Then, Ardent will launch a multi-million dollar renovation to convert the buildings into creative office space.
Demand is strong in the district, Ardent Managing Director Scott Werbel said.
One reason: A long-range plan calls for the Beltline Northeast Trail to help connect the Armour Yards district to Piedmont Park. It may also link with other trail systems in the Armour Yards area. Meanwhile, interest from companies seeking office space in converted industrial buildings is growing.
“Our real excitement was always the Beltline coming through there,” Werbel said of Armour Yards. “We’ve seen what happened on the Eastside Trail. But, now we also see the demand growing for these types of buildings across Atlanta.”
Armour Yards is “beachfront property,” Werbel added.
Preferred Office Properties has invested heavily into the buildings of Armour Yards, a collection of industrial properties along Interstate 85 on the southern edge of Buckhead.
The first phase was developed by Third & Urban and capital partner J.P. Morgan Asset Management. The success of the project underscores growing demand tenants have for alternatives to standard glass office towers, which dot the Atlanta skyline from Buckhead to downtown.
The buildings are within walking distance of the popular SweetWater Brewery and ASW Distillery. Other tenants within the development include East Pole Coffee Co., Fox Brothers, Coyote Logistics, and Atlanta Track Club. Michael Anderson of Cresa Global Inc. represented The Ardent Companies in this transaction.
In working on the deal at Armour Yards, Anderson saw demand from professional services firms including doctors’ groups and law firms. They were once content to lease space in traditional office buildings.
“There was a little over 200,000 square feet of interest prior to closing,” Anderson said. “This type of space is becoming popular across the entire country.”
Commercial Real Estate Editor
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