By: Ryan Salchert, Communications & Media Manager
FOR IMMEDIATE RELEASE
As of December, Piedmont Healthcare, Inc. occupies the entire property on a new long-term lease
Atlanta – January 26, 2022 – CBRE has announced the $28.1 million sale of 187 Chastain Road NW, a brand new, fully-leased, medical office building occupied in Kennesaw by Piedmont Healthcare, Inc. A joint venture of SG Property Services and Artemis Real Estate Partners bought the building from PLSQ Chastain, an entity comprised of investors from Quintus and Pope & Land Real Estate.
Pope & Land developed the 39,642 sq. ft. building for the ownership entity and arranged a long-term lease with Piedmont Healthcare which was represented by CBRE. Financing was provided by Renasant Bank, Brasfield Gorrie was the contractor and EYP was the architect.
“We signed the lease during the peak of the Covid-19 pandemic in 2020 and the tenant occupied their new building before the end of 2021. It was a complicated project with a tight timeframe, but the development team delivered on time and on budget and CBRE assisted us from start to finish,” said Mason Zimmerman, Senior Managing Development Partner for Pope & Land.
The Property sold upon completion for a record-low cap rate for a fully stabilized medical office building in the Southeast. The brand-new long-term lease with Piedmont Healthcare, which maintains an ‘A1’ credit rating by Moody’s, contributed greatly to the exceptional pricing.
“As shown by this transaction, investor interest in well-leased properties to dominant healthcare systems remains insatiable and is not just limited to Healthcare REITs or traditional core real estate funds,” said Lee Asher, Vice Chairman at CBRE. “This validates the trend we’re seeing that investors now are highly focused on alternative asset types, such as medical office and life sciences, that have weathered both the Great Recession and the ongoing COVID-19 pandemic.”
Built specifically for Piedmont Healthcare in 2021, the 39,642-square-foot property houses a linear accelerator (LINAC) and includes imaging, infusion and radiation/oncology suites for cancer treatment on the first floor. The second floor includes more than 30 exam rooms for multiple specialties.
“Strong partnerships are the foundation of our business. Pope & Land executed the development plan flawlessly and the CBRE team did a fantastic job telling the Piedmont Healthcare story. The results of the transaction speak for themselves,” said Kelly Keappler, President, Quintus Corporation.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2020 revenue). The company has more than 100,000 employees serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
About Pope & Land
Pope & Land specializes in developing office and mixed-use properties in the Southeastern United States and is firmly rooted in the real estate marketplace with a history dating back to 1979. More information on Pope & Land is available at www.popeandland.com.
About Quintus Corporation
Quintus Corporation and its business affiliates own, manage and develop a growing portfolio of investment and speculative real estate in the Atlanta metro area. Visit our website at www.quintuscorp.com.