Landmark decides to be its own landlord by buying Buckhead office park

The acquisition is a large investment by Landmark to become its own landlord within the Northcreek office complex, allowing it room to grow its Atlanta operations. The sale is also the latest example of an office property trading hands at a time when workplace buildings have shed their value because of post-pandemic declines in office demand.

“Landmark is not in the office business, but we prefer to own our own space, and this acquisition aligns well with what I’m looking to personally invest in,” Wes Rogers, CEO and chairman of Landmark Properties, said in a news release. Westlake Capital is also Rogers’ family office, effectively a privately held investment management firm.

Credit: Courtesy of Landmark Properties

Credit: Courtesy of Landmark Properties

The Northcreek sale was first reported by the Atlanta Business Chronicle. Built between 1971 and 1979, the offices underwent a renovation campaign in the 2000s and are more than 70% leased, real estate services firm JLL told the Chronicle. JLL marketed the property for sale and brokered the transaction.

Landmark was founded 21 years ago and has grown into the country’s largest student housing developer with roughly $15 billion in assets and 72,000 beds under management. It will initially lease about 9,000 square feet at Northcreek but could expand to 40,000 square feet as Landmark expands its Atlanta-area staff beyond its current 100 workers, Rogers told the Chronicle.

Rogers told the AJC in early March he has aggressive growth plans to expand Landmark overseas and expand into the build-to-rent sector. In Atlanta, Landmark is also planning a high-profile student housing tower adjacent to the Varsity. The fast-food joint’s operations will not be affected.

The project could feature up to 2,235 beds, making it one of the largest residential towers in the city.

“If it wasn’t such a great location, I’m not sure we’d be comfortable building so many beds,” Rogers said in the March 3 interview. “… But we feel like this is a great place to make a good long-term bet.”

Credit: Courtesy/Landmark Properties

Credit: Courtesy/Landmark Properties

The Northcreek acquisition adds nearly 537,000 square feet of workspace to Landmark’s portfolio, a strategic purchase at a time when other office parks have sold at steep discounts.

Atlanta-based Cousins Properties made headlines last summer by acquiring Midtown’s Proscenium tower through a joint partnership at a 43% discount. The Atlanta Braves in early April acquired Pennant Park, a 34-acre suburban office complex near Truist Park, for $93 million, only a $6 million premium over the property’s last sale in 2016 — despite all of the development in the area surrounding the Battery.

Northcreek last sold in 2016 for $101.5 million, according to Fulton County property records. Atlanta-based Regent Partners, which has owned and managed the property since 2016, will continue to serve as the property manager and leasing agent. It will also relocate its corporate office to Northcreek.

Rogers added: “This space not only supports growth in our current operations but also lays the foundation for future corporate expansion — most of which we anticipate happening in Atlanta.”