Property Details
Below Market Occupancy  Repositioning Opportunity  NOI Growth 
Asset Profile
Value Add

Johnson Square Medical Office Park

Marietta, GA

Medical Office Property
Greenleaf Capital Partners, LLC Atlanta, GA
Greenleaf Capital Partners, LLC
  • IRR 19%
  • Equity Multiple 2.25x
  • Hold Period 5Y
  • Minimum Investment $25K
  • Year 1 Cash on Cash 3.7%
  • Stabilized Cash on Cash 9% in Y3
  • First Distribution Jun 2021
  • Distribution Frequency Quarterly
  • Co-Investment 3%
  • Preferred Return 7%
  • Investor Profit Share 70%
  • Asset Profile Value Add
  • Loan-to-Value 71%
  • Current Occupancy 73.5%

About this Property

"Johnson Square Medical Office Park is a low-basis, high cash flow asset located in a built-out trade area with significant barriers to entry, and attractive risk-adjusted upside. Value is created through increasing occupancy to market levels and continuing recent leasing momentum."

- Joshua A. Friedensohn, Greenleaf Capital Partners

Address 1501-1523 Johnson Ferry Rd
Square Footage 123,794 sq. ft.
Current Occupancy 73.5%
Market Occupancy 94%
Current Average Rent $18.10/SF
Average Market Rent $18-22/SF
Purchase Price $13,500,000
Stabilized Loan to Value 48%

 

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: "Greenleaf lives and owns in this market and knows the supply constraints of the E. Cobb/Marietta market boasting its 94%+ occupancy. The property's design is uniquely competitive for the COVID office environment with individual exterior entrances and dedicated HVAC systems. Over the past year, amidst COVID, 12 new leases and 4 renewals (2 including expansions) have been signed with only one nonrenewal and with a strong lean towards medical tenants. Greenleaf has closed 8 commercial deals this year, a majority with predominantly medical tenants, believing strongly that well-located suburban office spaces that are COVID-adaptive will flourish in the years to come."

 

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

Joshua A. Friedensohn, Greenleaf Capital Partners:

  • "This investment offers day 1 cash flow from a well-located and maintained property."
  • "The property has the opportunity to continue leasing momentum to get to market levels."
  • "It is high value real estate on a main road, close to a major intersection and heavily built-out retail area with prominent companies in close proximity."

 

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

Joshua A. Friedensohn, Greenleaf Capital Partners: "Greenleaf will continue the momentum at the property by giving it the capital injection needed to lease-up to market levels. There will not be a need to push rents or perform heavy renovations, more so the strategy will be to continue to consolidate and repurpose the property to larger, more medically-focused tenants taking advantage of the proximity to hospital systems and the assisted living property next door."

 

How has COVID-19 impacted your business plan?

Joshua A. Friedensohn, Greenleaf Capital Partners: "COVID has less impacted, and more shaped Greenleaf's business plan for this asset. Greenleaf’s strategy of acquiring well-located, suburban office complexes with COVID-conducive characteristics has come out of the thought that high-density office locations will be out of favor in the future and there will be a high demand for office space closer to where business owners live and more spread out from other tenants."

 

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

Joshua A. Friedensohn, Greenleaf Capital Partner: "Less demand for office space as many companies across shift to remote work models brings a risk in the commercial property space. However, Johnson Square’s 2020 leasing momentum in a COVID environment exemplifies its true occupancy potential. In 2020, 12 new leases and 4 renewals (2 including expansions) have been executed, and there has only been 1 non‐renewal. Johnson Square’s street parking, individual entrances, and low-rise construction demonstrate its ideal COVID/post-COVID building design, and Greenleaf will employ its professional management expertise to drive occupancy to market levels."

 

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

About this Property

"Johnson Square Medical Office Park is a low-basis, high cash flow asset located in a built-out trade area with significant barriers to entry, and attractive risk-adjusted upside. Value is created through increasing occupancy to market levels and continuing recent leasing momentum."

- Joshua A. Friedensohn, Greenleaf Capital Partners

Address 1501-1523 Johnson Ferry Rd
Square Footage 123,794 sq. ft.
Current Occupancy 73.5%
Market Occupancy 94%
Current Average Rent $18.10/SF
Average Market Rent $18-22/SF
Purchase Price $13,500,000
Stabilized Loan to Value 48%

 

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: "Greenleaf lives and owns in this market and knows the supply constraints of the E. Cobb/Marietta market boasting its 94%+ occupancy. The property's design is uniquely competitive for the COVID office environment with individual exterior entrances and dedicated HVAC systems. Over the past year, amidst COVID, 12 new leases and 4 renewals (2 including expansions) have been signed with only one nonrenewal and with a strong lean towards medical tenants. Greenleaf has closed 8 commercial deals this year, a majority with predominantly medical tenants, believing strongly that well-located suburban office spaces that are COVID-adaptive will flourish in the years to come."

 

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

Joshua A. Friedensohn, Greenleaf Capital Partners:

  • "This investment offers day 1 cash flow from a well-located and maintained property."
  • "The property has the opportunity to continue leasing momentum to get to market levels."
  • "It is high value real estate on a main road, close to a major intersection and heavily built-out retail area with prominent companies in close proximity."

 

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

Joshua A. Friedensohn, Greenleaf Capital Partners: "Greenleaf will continue the momentum at the property by giving it the capital injection needed to lease-up to market levels. There will not be a need to push rents or perform heavy renovations, more so the strategy will be to continue to consolidate and repurpose the property to larger, more medically-focused tenants taking advantage of the proximity to hospital systems and the assisted living property next door."

 

How has COVID-19 impacted your business plan?

Joshua A. Friedensohn, Greenleaf Capital Partners: "COVID has less impacted, and more shaped Greenleaf's business plan for this asset. Greenleaf’s strategy of acquiring well-located, suburban office complexes with COVID-conducive characteristics has come out of the thought that high-density office locations will be out of favor in the future and there will be a high demand for office space closer to where business owners live and more spread out from other tenants."

 

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

Joshua A. Friedensohn, Greenleaf Capital Partner: "Less demand for office space as many companies across shift to remote work models brings a risk in the commercial property space. However, Johnson Square’s 2020 leasing momentum in a COVID environment exemplifies its true occupancy potential. In 2020, 12 new leases and 4 renewals (2 including expansions) have been executed, and there has only been 1 non‐renewal. Johnson Square’s street parking, individual entrances, and low-rise construction demonstrate its ideal COVID/post-COVID building design, and Greenleaf will employ its professional management expertise to drive occupancy to market levels."

 

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

Offered By

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Assets Under
Management

Currently
$240MM 50+ assets
Exited
$126.94MM 20+ assets
Portfolio LTV
62.9%  
Historical
Realized Returns

Total IRR
34%  
Equity Multiple
3.15x  
Annual Cash
12%  
Years Of
Experience

As Principals
20+ years  
In Business
13 years  
Size
21 Staff * Dedicated investor relations
* All information is reported by Greenleaf Capital Partners, LLC as of 11/24/2020.
Assets Under
Management

Currently
$240MM 50+ assets
Exited
$126.94MM 20+ assets
Portfolio LTV
62.9%  
Historical
Returns

Total IRR
34%  
Equity Multiple
3.15x  
Annual Cash
12%  
Years Of
Experience

As Principals
20+ years  
In Business
13 years  
Size
21 Staff * Dedicated investor relations
* All information is reported by Greenleaf Capital Partners, LLC as of 11/24/2020.

Financials

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Offering Financial

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Location Details

Marietta, GA

Joshua A. Friedensohn, Greenleaf Capital Partners: "Cobb County lies just north of Atlanta, GA and boasts some of the strongest demographics in the Southeast. Cobb County is one of the largest counties in Georgia with a population of 760,000, up from 450,000 just 30 years earlier. Cobb County has an ideal combination of talent pool, steady population growth, top schools and proximity to other Atlanta submarkets. A big part of the county's growth is attributed to having one of the top school systems 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."

"These attributes have attracted major employers including Comcast, Lockheed Martin, The Home Depot, GE, thyssenkrupp and The Weather Channel. Cobb County also recently became the home of the Atlanta Braves and a $700m, 1.7m SF development – The Battery."

"Cobb County is served by several major healthcare hubs including:"

  • "WellStar Kennestone Hospital – 633 bed community hospital, Top 100 rated and #6 in GA"
  • "WellStar Windy Hill Hospital – 115 bed hospital, Top 100 rated and home to the SE’s largest Sleep Disorders Center"
  • "Cobb Hospital – 382 bed hospital, Top 100 rated and includes cancer and cardiac programs"
  • "WellStar East Cobb Health Park - 20 private/prep rooms, 3 operating suites & 3 procedure rooms"

"Closer to the property, there is an average household income of $172,000 and median home value over $450,000 within a 2-mile radius. The area surrounding is primarily a residential one with built-out retail areas, including a Publix, Target, Whole Foods & Trader Joe’s at the nearest intersection."

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Offering Agreement Documents

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