ATCAP Buys Northeast Atlanta Industrial Park

ATCAP Partners has acquired a 12-building light industrial park totaling about 753,700 square feet in Atlanta for an undisclosed amount. Dogwood Industrial Properties, an investment platform of TPG Real Estate that specializes in industrial assets, was the seller.

Developed in phases between 1973 and 1986, Gwinnett Park is currently 94 percent leased to 36 tenants with an average lease term of 2.6 years. The property, which is adjacent to I-85 in Atlanta’s Northeast submarket, offers dock-high rear load configurations, 18- to 22-foot clear heights, and about a third of the space configured as office.

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Dallas-based ATCAP has been an active investor nationwide in recent years. In 2023, ATCAP acquired the Houston 610 Loop Portfolio, totaling nearly 1.2 million square feet of industrial space, from Illinois-based CenterPoint Properties.

In 2022, the company formed a joint venture with Brookfield to acquire a 3.5 million-square-foot national logistics portfolio comprised of 51 properties.

JLL, which brokered the deal, representing the seller and procured the buyer. JLL also secured five-year, fixed-rate acquisition financing through Empower Investments.

In the Gwinnet Park transaction, JLL Senior Managing Directors Dennis Mitchell, Matt Wirth and Britton Burdette, and Director Jim Freeman, led the effort. JLL’s Debt Advisory team representing the borrower was led by Senior Director Bobby Norwood and Senior Managing Director Brian Carlton.

Atlanta industrial still strong

Over the last five years, the infill portion of the Northeast submarket has maintained a vacancy rate on average 260 basis points lower than the broader Northeast submarket, according to JLL.

Overall, Atlanta’s industrial market kicked off 2024 with over 4 million square feet of absorption during the first quarter, which was equal to about 43.7 percent of total net absorption for all of 2023, JLL reported. Three-quarters of deals inked during the first quarter were for new space rather than renewals, illustrating strong demand in the market.

Industrial construction in the Atlanta market continued to drop in the first quarter of 2024. Since 2021, the market averaged 20 construction starts (representing 7.1 million square feet) per quarter, JLL noted, but in the first quarter of this year, only four projects broke ground, totaling 4.6 million square feet. Thus, JLL forecasts the industrial vacancy rate, currently at 7.3 percent, to edge downward.

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