CapRidge Partners Launches Shallow-Bay Industrial Market Entry in Atlanta with Acquisition of Four Area Business Parks
Posted on October 4, 2021
Represented by Foundry Commercial, CapRidge Now Owns 500,000 Square Feet in the Light Industrial Asset Class
Atlanta, Ga. (October 4, 2021) – Understanding that supply has been diminishing in the Atlanta area for light industrial assets, Austin-based CapRidge Partners – aided by Foundry Commercial – has acquired four business parks totaling close to 500,000 square feet since launching the venture in the early part of 2021.
“CapRidge has been following the light industrial space across the Sunbelt for the past couple of years, noticing increasing opportunity as supply drops and demand rises,” said Dan Terpening, Managing Director, CapRidge Partners. “It’s evident now – maybe more than ever – that industrial users desire more warehouse space, docks, loading areas, and showroom-type spaces, opening up a great opportunity for CapRidge’s active management to add value in the market.”
Cobblestone Business Park is a two-building dock-high industrial portfolio acquired by CapRidge that has just under 100,000 square feet. The portfolio is located approximately three miles from I-575 and is well positioned in the Northwest submarket of Atlanta in the flourishing city of Woodstock, one of the largest labor markets in the area
Franklin Forest is a five-building flex industrial business park located in Northwest Atlanta, one of the region’s premier industrial submarkets, with little available land for development of new product. The asset, inclusive of over 113,000 square feet, is located just off I-75 one exit north of The Battery mixed use development and new home to the Atlanta Braves. Additionally, the Franklin Forest asset presented CapRidge with the opportunity to buy a rare value-add flex industrial deal in an off-market transaction.
Whittier Mill Complex is a five-building light industrial portfolio located in Atlanta that totals 81,409 square feet. This portfolio is strategically located within one mile of two different interchanges of I-285 and in close proximity to Buckhead, Midtown, and the northwest Atlanta suburbs. As a shallow bay, multi-tenant industrial complex located in an excellent infill location, the property currently serves a variety of uses including warehouse, distribution, and showroom. Whittier Mill presented CapRidge with the rare opportunity to acquire and urban infill light industrial product inside the I-285 perimeter, where more than 21 million square feet have been demolished for “highest and best use” product types or repurposed over the last 20 years.
Most recently, CapRidge acquired Lakeridge Court, a 188,000-square-foot four-building infill business park in the Southeast Cobb submarket. The business park features a number of nearby amenities and direct access to Atlanta’s interstate network, attracting and retaining employees from all areas of the metro. CapRidge intends to transition the property from heavy office suites to light industrial within the next couple of years, creating fully air-conditioned warehouse suites targeting users needing to be close to Atlanta’s Central Business District.
“We love the strategy CapRidge is rolling out across the Sunbelt markets; industrial rents for infill product are close to if not equal to single-story office rents. Acquiring product that has seen significant office creep through the last cycle and demolishing it back to minimal finish not only increases leasing velocity but also yields cap rate compression on the reversion,” stated Camp.
“CapRidge will do very well in their target markets implementing this strategy. In my opinion, it is among the only value proposition remaining in this crazy industrial market, where core assets are trading just north of 3% yields,” added Hanner.