JLL and Northmarq partner to achieve strategic value-add acquisition in Peachtree Corners
News release
05 September 2023
Investment highlights continued interest in office market
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ATLANTA, Sept. 6, 2023 - JLL today announces the acquisition of 3500 Engineering Drive in Peachtree Corners by long-term client RealCo. JLL’s Executive Vice President Paul Hanna managed the transaction, alongside Northmarq Vice President Katie Elliott. The four-story office building in Peachtree Corners recently secured FLEETCOR for a 25,244-square-foot lease.
The building is 101,094 square feet and sits directly adjacent to the future Peachtree Corners Technology Park and trail, which, at completion, will connect the entire city through an 11.5-mile multi-use trail system. 3500 Engineering Drive is located at the head of the future trail, allowing employees to immediately access walking and biking trails and embrace the office and greenspace connection. 3500 Engineering Drive comprises 6.6 acres and is located less than 5 minutes from popular retail destinations, The Forum and Town Center.
“As available space tightens in this desired submarket, we have seen demand pickup. The 3500 Engineering Drive building is in an area of growing demand for office and is one of Peachtree Corners’ hidden gems,” said Paul Hanna, Executive Vice President with JLL. “This client believes in the future of office, and this submarket specifically. This acquisition goes to show that there are investors who understand that office is an important and strategic asset to own.”
FLEETCOR’s 11-year lease in the building commenced on Sept. 1 and brings the building to more than 58% occupied. RealCo is part of a family-owned office that holds assets long-term and has been acquiring commercial properties across the Southeast US since 1980.
Katie Elliott with Northmarq said, “We are pleased with this acquisition for our client. While the office market is changing, workers still need a home to share in order to exchange ideas and foster innovation. 3550 Engineering provides this today and will continue to do so in the future.”
At the time of acquisition, the building was 38% occupied. The previous owner of the building acquired it in 2018 and spent approximately $2 million in renovations. Peachtree Corners’ dynamic office market is experiencing significant change. With no new office development in the pipeline and Intuitive Surgical’s taking over 600,000 SF out of play, office vacancy is projected to shrink over the coming years.
Tom Shafer, John Hinson and Chase Mathews with OnPace Partners represented the seller in the transaction.
About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 106,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.