Property Details
Asset Profile
Core

Government Office Atlanta MSA - 2300 Lake Park

Atlanta, GA

Office Property
Greenleaf Capital Partners, LLC Atlanta, GA
Greenleaf Capital Partners, LLC
  • IRR 14.7%
  • Equity Multiple 1.86x
  • Hold Period 5Y
  • Minimum Investment $25K
  • Year 1 Cash on Cash 6.5%
  • Stabilized Cash on Cash 6.5% in Y1
  • First Distribution Dec 2021
  • Distribution Frequency Quarterly
  • Co-Investment 2% ($80K)
  • Preferred Return 7%
  • Investor Profit Share 70%
  • Asset Profile Core
  • Loan-to-Value 79%
  • Current Occupancy 90.1%

About this Property

"Greenleaf's latest government office opportunity, 2300 Lake Park, is a stable investment in a top market. Lake Park is anchored by three federally-backed tenants occupying 70% of occupied square footage at an attractive basis at $100/SF and an +8.0% cap rate."

- Joshua A. Friedensohn, Greenleaf Capital Partners

Address 2300 Lake Park Dr SE
Year Built 1985
Square Footage 87,025 sq. ft.
# of Units 11
Current Occupancy 90.1%
Market Occupancy 92%
Current Average Rent $14.15/SF
Average Market Rent $18.50/SF
Purchase Price $9,300,000
Price Per Square Foot $107
Stabilized Loan to Value 56%

 

Top Questions

All answers are provided by the sponsor, Greenleaf Capital Partners, or its representatives.

 

Why are you buying the Property?

Joshua A. Friedensohn, Greenleaf Capital Partners:

  • "Federal Credit Tenants: Lake Park is anchored by 3 GSA tenants including the IRS, Defense Contract Management Agency and the Office of Personnel Management. With a WALT of nearly 6 years, Lake Park has high-credit and long-term leases anchoring the Rent Roll. The lease structures also have built-in annual escalations averaging nearly 2.5% annually and there are fixed expense reimbursements covering over half of the property's operating costs."
  • "Attractive Basis: The property is being acquired at a basis just over $100/SF at an 8.0%+ cap rate with 90% occupancy and value-add through leasing the remaining vacant suites. This reflects a substantial discount to replacement and discount compared to market & submarket comparable properties."
  • "Top Tier Atlanta Submarket: Cobb County is a top location in the Atlanta MSA to live, work and play. Boasting a top school system in the country, strong population and development growth, access to major interstate arteries - it has attracted 5 Fortune 500 companies and is home to the Atlanta Braves."

 

What are the most important aspects of this investment opportunity for the investors?

Joshua A. Friedensohn, Greenleaf Capital Partners:

  • "Local Presence: Lake Park is in Greenleaf’s backyard and will benefit from close proximity to its home office and other office properties in the submarket."
  • "Government Portfolio: Investors in Lake Park will gain value through Greenleaf’s government portfolio, both operational and at a potential portfolio exit."

 

What is your investment strategy/business plan for the Property?

Joshua A. Friedensohn, Greenleaf Capital Partners: "After closing on the property Greenleaf plans to hold the property and operate it alongside its portfolio of similar properties in the market."

  • "Step One - Transition: After closing, Greenleaf will execute it’s transition plan to repair/replace aging components of the building and continue the leasing traction to improve occupancy."
  • "Step Two - Operations: Greenleaf will manage the property and operate for cash flow. Rents will grow organically with built-in rent escalations until the time comes for lease renewals, which current rents trail the submarket by 20%."
  • "Step Three - Focus on GSA Tenants: Lake Park will be operated in Greenleaf’s growing portfolio of government tenanted properties. The growing portfolio increases GSA operational scale and relationships, as well as builds towards a potential cap rate compression on a portfolio exit."

 

How has COVID-19 impacted your business plan?

Joshua A. Friedensohn, Greenleaf Capital Partners: "COVID-19 has less impacted but shaped Greenleaf’s business strategy. Greenleaf’s strategy is to acquire well-located properties in markets with growing population trends. Lake Park is specifically anchored by GSA tenants backed by the federal government and would cover its debts if all other tenants vacate."

 

What are the risks and how are you mitigating those risks?

Joshua A. Friedensohn, Greenleaf Capital Partner:

  • "Lease Renewal" 2300 Lake Park’s rent roll has a weighted average lease term that closely follows the hold period. This allows the NOI to increase through built-in rent escalations and then renewals at market levels before an exit."
  • "Non-Payment: With 2300 Lake Park’s high quality and government backed tenants, the risk of non-payment is reduced and the tenants are more likely to fulfill their financial commitment to the spaces."
  • "Leasing: The property has seen an increased demand in tours and leasing that have driven up new lease rates in line with the market and created a funnel of potential new tenants."

 

NOTE: All answers provided by the sponsor, Greenleaf Capital Partners, or its representatives.

About this Property

"Greenleaf's latest government office opportunity, 2300 Lake Park, is a stable investment in a top market. Lake Park is anchored by three federally-backed tenants occupying 70% of occupied square footage at an attractive basis at $100/SF and an +8.0% cap rate."

- Joshua A. Friedensohn, Greenleaf Capital Partners

Address 2300 Lake Park Dr SE
Year Built 1985
Square Footage 87,025 sq. ft.
# of Units 11
Current Occupancy 90.1%
Market Occupancy 92%
Current Average Rent $14.15/SF
Average Market Rent $18.50/SF
Purchase Price $9,300,000
Price Per Square Foot $107
Stabilized Loan to Value 56%

 

Top Questions

All answers are provided by the sponsor, Greenleaf Capital Partners, or its representatives.

 

Why are you buying the Property?

Joshua A. Friedensohn, Greenleaf Capital Partners:

  • "Federal Credit Tenants: Lake Park is anchored by 3 GSA tenants including the IRS, Defense Contract Management Agency and the Office of Personnel Management. With a WALT of nearly 6 years, Lake Park has high-credit and long-term leases anchoring the Rent Roll. The lease structures also have built-in annual escalations averaging nearly 2.5% annually and there are fixed expense reimbursements covering over half of the property's operating costs."
  • "Attractive Basis: The property is being acquired at a basis just over $100/SF at an 8.0%+ cap rate with 90% occupancy and value-add through leasing the remaining vacant suites. This reflects a substantial discount to replacement and discount compared to market & submarket comparable properties."
  • "Top Tier Atlanta Submarket: Cobb County is a top location in the Atlanta MSA to live, work and play. Boasting a top school system in the country, strong population and development growth, access to major interstate arteries - it has attracted 5 Fortune 500 companies and is home to the Atlanta Braves."

 

What are the most important aspects of this investment opportunity for the investors?

Joshua A. Friedensohn, Greenleaf Capital Partners:

  • "Local Presence: Lake Park is in Greenleaf’s backyard and will benefit from close proximity to its home office and other office properties in the submarket."
  • "Government Portfolio: Investors in Lake Park will gain value through Greenleaf’s government portfolio, both operational and at a potential portfolio exit."

 

What is your investment strategy/business plan for the Property?

Joshua A. Friedensohn, Greenleaf Capital Partners: "After closing on the property Greenleaf plans to hold the property and operate it alongside its portfolio of similar properties in the market."

  • "Step One - Transition: After closing, Greenleaf will execute it’s transition plan to repair/replace aging components of the building and continue the leasing traction to improve occupancy."
  • "Step Two - Operations: Greenleaf will manage the property and operate for cash flow. Rents will grow organically with built-in rent escalations until the time comes for lease renewals, which current rents trail the submarket by 20%."
  • "Step Three - Focus on GSA Tenants: Lake Park will be operated in Greenleaf’s growing portfolio of government tenanted properties. The growing portfolio increases GSA operational scale and relationships, as well as builds towards a potential cap rate compression on a portfolio exit."

 

How has COVID-19 impacted your business plan?

Joshua A. Friedensohn, Greenleaf Capital Partners: "COVID-19 has less impacted but shaped Greenleaf’s business strategy. Greenleaf’s strategy is to acquire well-located properties in markets with growing population trends. Lake Park is specifically anchored by GSA tenants backed by the federal government and would cover its debts if all other tenants vacate."

 

What are the risks and how are you mitigating those risks?

Joshua A. Friedensohn, Greenleaf Capital Partner:

  • "Lease Renewal" 2300 Lake Park’s rent roll has a weighted average lease term that closely follows the hold period. This allows the NOI to increase through built-in rent escalations and then renewals at market levels before an exit."
  • "Non-Payment: With 2300 Lake Park’s high quality and government backed tenants, the risk of non-payment is reduced and the tenants are more likely to fulfill their financial commitment to the spaces."
  • "Leasing: The property has seen an increased demand in tours and leasing that have driven up new lease rates in line with the market and created a funnel of potential new tenants."

 

NOTE: All answers provided by the sponsor, Greenleaf Capital Partners, or its representatives.

Offered By

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Assets Under
Management

Currently
$294MM 50+ assets
Exited
$136MM 20+ assets
Portfolio LTV
53.1%  
Historical
Realized Returns

Total IRR
46.7%  
Equity Multiple
2.66x  
Annual Cash
12%  
Years Of
Experience

As Principals
20+ years  
In Business
14 years  
Size
23 Staff * Dedicated investor relations
* All information is reported by Greenleaf Capital Partners, LLC as of 4/30/2021.
Assets Under
Management

Currently
$294MM 50+ assets
Exited
$136MM 20+ assets
Portfolio LTV
53.1%  
Historical
Returns

Total IRR
46.7%  
Equity Multiple
2.66x  
Annual Cash
12%  
Years Of
Experience

As Principals
20+ years  
In Business
14 years  
Size
23 Staff * Dedicated investor relations
* All information is reported by Greenleaf Capital Partners, LLC as of 4/30/2021.

Financials

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Offering Financial

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Location Details

Atlanta, GA

Joshua A. Friedensohn, Greenleaf Capital Partners: "Lake Park is located in Cobb County, an affluent, well-educated area with average income over $100k/yr and the 2nd largest university in the state. The county boasts some of the strongest demographics in the Southeast and is one of the largest counties in Georgia with a population of 760,000, up from 450,000 just 3 decades prior. A large portion of this growth comes from millennials, as Cobb county is the fastest growing suburb for this age range at an increase of 32% in an 18-month span."

"A critical part of the county’s growth is attributed to having a top school system in the country with 120,000 students, 58 schools recognized as Schools of Excellence and 22 National Blue Ribbon Schools. Cobb County is also home to 7 colleges & universities, including Kennesaw State University with 35,000 students – which translates to being the best educated county in Georgia and 12th in the country with 47% of the population with a Bachelor’s degree or higher."

"Cobb County has an ideal combination of a strong talent pool, steady population growth, top schools, and proximity to other Atlanta submarkets. These attributes have attracted major employers including Comcast, Lockheed Martin, The Home Depot, GE, thyssenkrupp and The Weather Channel. Positioned along the high-growth corridor of I-75, Lake Park takes advantage of the momentum generated by Truist Park, home of the Atlanta Braves and the $1B development "The Battery" located less than 1 mile away. Specific to the property, there is an average household income of $101,651 and median home value of over $494,463 within a 5-mile radius."

Documents

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Offering Agreement Documents

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