Adventus Opportunity Fund ("AOF") by its Trustee, Adventus Opportunity Services Inc. ("AOSI") is pleased to announce it has acquired its second property ("1600 Parkwood", or the "Property") in suburban Atlanta, for consideration of US$23.15 million. 1600 Parkwood is a stable, high quality asset with excellent tenancy located in the Cumberland Galleria submarket of suburban Atlanta. The Property is 90% occupied with a weighted-average lease term of 6.3 years.
1600 Parkwood is located in one of the most vibrant, high-growth submarkets of Atlanta, Georgia. The primary tenant of the Property is a highly decorated and locally established professional services firm, currently on a long-term lease and has occupied these premises for 18 years. The Property has excellent access to a deep surrounding amenity base of retail, dining, hospitality, and entertainment options. The Property is near the intersection of two of the submarket’s main arteries, providing efficient connections to all areas of metro Atlanta.
"1600 Parkwood is an excellent addition to the AOF Portfolio. In the first year of the new fund, AOF has now accumulated US$100 million of valuable properties in Atlanta. We continue to acquire stabilized properties, with below market rents, at a significant discount to their replacement cost," commented Rod Johnston, President and CEO of AOSI. "Furthermore, this Property is in close proximity to an existing building owned by Adventus Realty Trust (1000 Parkwood). These two sister buildings will be operated as a single property, providing meaningful operating expense synergies."
The debt financing for the Property was initiated by Bank of America which provided US$14.0 million of financing on a 5 year basis at a variable rate equal to LIBOR plus 190 bps per annum, with no principal payment amortization over the first three years of the loan.