Estero investment firm spends $27.6 million for the Cobb Corporate Center and Northwoods Commons
TerraCap Management. LLC, the Estero-based investment firm that has been among the more active acquirers of commercial real estate along the Gulf Coast over the past five years, has purchased two office complexes in Georgia for $27.6 million.
Together, the Cobb Corporate Center and the Northwoods Commons contain 297,000 square feet In eight single-story buildings.
Cobb, in Marietta, Ga., and Northwoods, in Norcross, Ga., are two of the fastest-growing submarkets connected to Atlanta, where TerraCap has acquired more than 1.4 million square feet of suburban office space since 2016.
As with many previous TerraCap purchases, both Cobb and Northwoods represent value-add propositions. Cobb is roughly 80% occupied, while Northwoods has a vacancy rate of 47%.
“Cobb Corporate Center and Northwoods Commons are part of our thematic value-add strategy around single-story office buildings in rapidly densifying suburban submarkets,” says Matt Stewart, a TerraCap partner and the firm’s director of asset management.
To increase occupancy, TerraCap intends to improve both properties with new signage, landscaping and enhanced interiors. In the wake of the acquisition, TerraCap has retained Lincoln Property Co., of Dallas, to both lease and manage the two properties.
TerraCap, which was founded in 2008, manages assets containing about eight million square feet of space in Florida, Georgia, North Carolina and Colorado. In all, its portfolio is valued at roughly $1.5 billion.