EQT Exeter Acquires Satellite Place Flex Office Park in Suburban Atlanta, Plans Transformation into Warehouse

EQT Exeter Acquires Satellite Place Flex Office Park in Suburban Atlanta, Plans Transformations into Warehouse

In a move expected to boost the industrial real estate capacity of Gwinnett County, EQT Exeter, a global real estate investor, has reportedly acquired the Satellite Place, a flex office and industrial facility sprawling over 289K square feet. The property was bought from Satellite Place Property LLC for a sum of $36.25M in an all-cash deal.

About the Deal

The property sale was brokered by Newmark’s Senior Managing Director, Casey Keitchen. Satellite Place boasts of prominent tenants such as Ricoh USA leasing 50K SF, Valmet using 27K SF, and Codoxo occupying 20K SF. Satellite Place Property LLC, the selling entity, is affiliated with Virtua Partners and Clear Vista Management.

Situated near the Gwinnett Place Mall and Interstate 85, the Satellite Place complex houses a set of four buildings. Three out of these four office spaces, namely 2450, 2405 and 2400 Commerce Ave., have around 80% office build-out, while the fourth one at 2425 Commerce Ave, predominantly designed for office tenants, has a high vacancy rate.

The Future Plan

EQT Exeter’s strategic business plan involves the conversion of the existing office spaces into shallow-bay warehouse spaces. This move is in response to escalating tenant demands for last-mile distribution points within the industrial market subsector. EQT Exeter is also in talks with an unidentified party to flip the 2425 Commerce Ave. building, which is majorly unoccupied.

Keitchen quoted, “Their plan is to peel back office into more industrial.” He further added, “You got brand new multifamily going up a half mile away, and the [Gwinnett Place] mall will be redeveloped in the near future.”

More about EQT Exeter

EQT Exeter, ranked as the 10th-largest private real estate asset manager in the world by PERE, has a strong presence in Metro Atlanta, managing or owning 75 properties according to its website. The firm, with its headquarters in Radnor, Pennsylvania, and London, is renowned for its active investment strategies.

Previous Legal Hiccups

Quinn Palomino, the leader of Virtua Partners, along with an affiliate, had been legally charged by the Securities and Exchange Commission in 2022 for not disclosing fee details and conflicts of interest to their investors. The SEC found that a private equity fund raised by Virtua Capital Partners was used for investing in properties owned by Virtua entities. Palomino and her colleagues agreed to pay a fine exceeding $2M without admitting to any wrongdoing.

Small-Bay Warehouse and Industrialization

Small-bay warehouses are distinctively smaller and narrower compared to regular warehouses. With rows of truck bay doors stretching along the facade, they offer more flexibility and easy conversion to and from office footprints. Despite accounting for only 12% of the Atlanta Metro industrial market, these warehouses have been experiencing a surge in investor demand due to their proximity to major population centers.