Real Estate Notes
May 14, 2004
Buying a Solution
Solution Property Group LLC is continuing its real estate march on the Atlanta office and [industrial] market.
The company recently purchased Bluegrass Promenade, a 94,000-square-foot, single-story office building at 1200 Bluegrass Lakes Parkway in Forsyth County, said Mal Hill, a principal with Solution Property. Regent Partners LLC is the seller, Hill said.
Currently, the warehouse is empty. But Solution Property plans to spruce it up and eventually flip the property for a higher price.
"We're going to market it for sale or lease," Hill said.
This is Solution Property's latest purchase in the metro area. In September, the company purchased the two-building Suwanee distribution center campus formerly used by electronics manufacturer Solectron Corp. (NYSE: SLR) for $6.5 million. And in December, Solution Property paid $4.1 million for a 220,000-square-foot distribution facility at 5290 Old Dixie Highway formerly used by Kmart Corp. (Nasdaq: KMRT).
Solution Property also is moving forward on plans to construct a 547,000-square-foot distribution center in Braselton. Called the Braselton Distribution Center, the facility, which is part of a 400-acre tract owned by Solution Property, would be expandable up to 930,000 square feet. The site is across from the Haverty Furniture Cos. (NYSE: HVT) warehouse.
If regional planners grant approval, Hill said Solution Property will begin construction in June for a finish by next year.
With no tenants on board, Hill said Solution Property had yet to secure financing on the construction. But Hill said he was optimistic that Solution Property would get the money.
"I'm reasonably optimistic in the next 20 months that the trend toward regional distribution centers is moving forward," he said. "Our financial partners have supported our platform strategy and results."