New York Life and Dilweg Sell Royal Centre in Atlanta
ATLANTA, GA (April 10, 2018) – A joint venture between a New York Life Real Estate Investors affiliate and The Dilweg Companies announced today the disposition of Royal Centre, three Class A office buildings located in the city of Alpharetta within Atlanta’s North Fulton submarket.
Bridge Office Fund Manager LLC (Bridge Office Manager), an affiliate of Bridge Investment Group LLC (Bridge), acquired Royal Centre II, III and IV consisting of 634,487 square feet and situated on 37.7 acres in the Royal 400 office park. The buildings were constructed between 1998 and 2000 and were 85 percent leased at the time of sale. New York Life and Dilweg acquired Royal Centre in August 2015, when the property was 74 percent leased.
“With the help of Stream Realty and completion of our capital program, which included lobby renovations to all three buildings, we were able to stabilize the asset and exceed our investment objectives in just over two years. A great success for all our team members,” said Dennis Morris, Director and Asset Manager at NYL Real Estate Investors.
“With the acquisition of these quality assets, we are excited to expand our footprint in Atlanta,” said Jeff Shaw principal with Bridge Office and CEO of Bridge Commercial Real Estate. “This strategic investment fits perfectly with our goal to acquire office assets close to walkable, amenity-rich environments that appeal to today’s workforce.”
“Royal Centre marks our third successful Atlanta exit,” said Anthony Dilweg, CEO of The Dilweg Companies. “Royal Centre confirmed our commitment to the Atlanta metro, leading us to open our first satellite office. We plan to expand our Atlanta portfolio over the next 24 months and beyond.”
“Royal Centre fit well within our investment strategy,” said Jerry Banks, Managing Director of The Dilweg Companies. “We invested more than $3 million to improve tenant amenities and mechanical systems at the property, which helped us attract and retain tenants.”
Bridge plans to further modernize the assets with the addition of collaborative work spaces, tenant amenity centers, upgrades to the fitness center, cafés and conference facilities as well as creating fresh exterior common spaces and upgrading the landscape are part of the improvement plan. Royal Centre is located only two miles from prime dining and retail, providing an abundance of amenities for tenants and visitors.
The North Fulton submarket maintains a strong, consistent demand for space. With limited supply of available office space in the area, there is an opportunity to increase occupancy and add additional value to the assets. The submarkets superior access to the talented labor pool from the surrounding areas of Alpharetta, Roswell and John’s Creek appeals to prospective tenants.
Dilweg owns more than 1.7 million square feet in Atlanta and more than 5.7 million square feet in the Southeast.
The purchase will expand Bridge’s Atlanta presence to nearly 2 million square feet and will expand the Bridge Office portfolio to 67 buildings and nearly 9 million square feet.
Jim Caswell, Stewart Thrash and Kevin Lott with Bridge Commercial Real Estate will market the properties for lease.
David Meline and Samir Idris of Cushman & Wakefield represented the Seller on the deal.
About The Dilweg Companies
The Dilweg Companies is a full-service commercial real estate investment firm based in Durham, North Carolina. Since its launch in 1999, Dilweg has gained broad experience in the acquisition, development and operation of office, retail, warehouse/flex, multifamily and self-storage properties. Dilweg’s investors have sponsored over $1.34 billion in assets and more than 11.1 million square feet throughout North Carolina, South Carolina, Virginia, Florida and Georgia. For more information, please call (919) 402-9100 or go to www.dilweg.com.