A Vinings landmark sells for over $20 million

As reported in Atlanta Business Chronicle by Douglas Sams

A 7-story office building just north of the city that for years has attracted companies with its impressive views of the Atlanta skyline has sold just over $20 million.

Atlanta Property Group bought Overlook I, a 140,000-square-foot building that gets its name for its location on a hill in Vinings known as Mount Wilkinson. Atlanta Property Group paid about $22 million, or $157 per square foot, according to sources familiar with the transaction.

It may not be as sexy as a trophy tower in Midtown, but Overlook I was acquired at a low basis, remains stable at 87 percent leased, and has an anchor tenant locked up for several more years, Paradies Lagardère, a company that operates stores in airports, hotels and other locations.

Atlanta Property Group will put about $2.2 million toward renovations at Overlook I. Shep Dinos, managing partner with Atlanta Property Group, said his company bought the building at an attractive basis, and the investment presents “compelling risk-adjusted returns.” It’s worth noting that developing a similar building to Overlook I in Vinings today would cost almost $400 per foot.

Atlanta Property Group has been an active investor in the Vinings area for several years, Dinos said.

The seller of Overlook I was real estate investor Albany Road Partners. Jay O’Meara of CBRE represented Albany Road in the transaction.