Royal Oak Realty Trust Inc. has closed on its 13th property in a $9.3 million deal, which is also its first acquisition in the Atlanta area.
Company executives said the acquisition of Atlantix Global Systems LLC facility in Peachtree Corners, a submarket of Atlanta, closed Aug. 31.
Daniel Goldstein, Royal Oak president and CEO, said the growing Atlanta market, as well as the building’s location there were reasons why the firm was interested in acquiring the property. The site is located just northeast of the region’s main expressway, I-285.
“It’s a great deal for us,” Goldstein said.
The nearly 87,000-square-foot building sits on roughly eight acres. Some 130 employees work at the site.
Built in 1996, the building is used for Atlantix’s headquarters, light manufacturing/assembly and warehousing operations. The firm buys, sells, leases, rents, consigns and trades information technology hardware, storage equipment and telecommunications equipment.
Atlantix signed a 15-year lease with Royal Oak under the agreement. Employees from the Atlanta office of Newmark Grubb Knight Frank represented Atlantix in the transaction.
As a result of the acquisition, Royal Oak now owns some 1.2 million square feet of space in six states for a portfolio of roughly $72 million.
The deal is the second for Royal Oak in the Southeast, said Bruce Bender, Royal Oak’s vice president.
Royal Oak focuses on the Northeast, Midwest and Southeast regions. It owns properties in Alabama, as well as Illinois, Michigan, New York and Ohio.
Royal Oak is a private, non-traded real estate investment trust formed, with its subsidiary, Royal Oak Realty Trust LLC, in 2013 and 2014 under the names Buckingham Net Leased Properties Group Inc. and Buckingham Net Leased Properties Group LLC.
The names were changed to Royal Oak in December 2015.
The company focuses on office and industrial properties net leased to tenants under long-term absolute triple-net lease contracts. Absolute triple net leases are a type of net lease in which the tenant agrees to pay a monthly lump sum base rent as well as the property taxes, the property insurance and the maintenance.
Royal Oak is looking at other properties for potential acquisition and expects growth in Western New York, as well as in Pennsylvania and Wisconsin, officials said.
“We’re excited for the balance of 2016,” Goldstein said.
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