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H.I.G. Realty Partners and Square Mile Capital Co-Originate $186 Million Loan Secured by Atlanta Office Asset
NEW YORK – January 30, 2020 – H.I.G. Realty Partners (“H.I.G.”) and Square Mile Capital Management LLC (“Square Mile Capital”) today announced that they have jointly originated a $186 million loan to finance the renovation and expansion of the Campanile Building, an office and retail building in the Midtown submarket of Atlanta, Georgia.
The loan was made to the Dewberry Group who has owned the property since 2010, and the comprehensive renovation plan will expand the existing building from 445,000 square feet to 626,000 square feet, with the addition of new ground-floor retail included. Upon completion, the renovated asset will contain high-quality finishes, a renovated marble lobby, and a new, modern façade.
H.I.G. Managing Director Michael Mestel said, “We believe the Dewberry Group will turn the Campanile Building into a best in class office property in the Midtown Atlanta submarket. Midtown has seen a strong migration of high-quality tenants and the Dewberry Group will be delivering office space and amenities that will be attractive to companies seeking Class-A office space in this central location. H.I.G. is incredibly excited about this opportunity and will continue to pursue opportunities like this throughout the Atlanta market and the Southeast.”
Square Mile Capital Principal Eric Cohen said, “We continue to seek out high quality investment opportunities in the Atlanta market, and the financing of the physical renovation and expansion of the Campanile Building fit right in with our objective. The renovation of the asset, which is strategically situated at the prime Main and Main location, will help to transform it into one of Midtown’s most desirable places to work. This also gives us the opportunity to forge a new relationship with the Dewberry Group.”
The property is located at the intersection of 14th St. and Peachtree St. The surrounding area offers a growing retail presence with numerous walkable amenities, and the property is also conveniently located within a 10-minute walk of both the Midtown and the Arts Center MARTA Transit stops, with access to the Gold and Red lines. The property is easily accessible by car via I-85, Peachtree Street, Piedmont Ave, and 14th St. NW. The new retail space will also be a considerable amenity for prospective office tenants.
About H.I.G. Realty Partners
H.I.G. Realty Partners is the real estate platform of H.I.G. Capital, a leading global private equity and alternative assets investment firm with over $35 billion of equity capital under management,* and manages $2.6 billion in capital commitments focused on small-to-mid cap real estate assets. H.I.G. Realty Partners targets both equity and debt investments across all property types located throughout the U.S. and Europe. Equity investments are concentrated on the acquisition of value-add assets, employing a hands-on, operationally focused approach that seeks to generate substantial cash flow and asset appreciation through rehabilitating, redeveloping, repositioning and rebranding assets that have been capital starved and/or poorly managed. Debt investments include senior bridge loans, mezzanine loans and preferred equity collateralized by transitional properties and portfolios. For more information, please refer to the H.I.G. website www.higcapital.com.
About Square Mile Capital Management LLC
Square Mile Capital Management LLC is an integrated institutional real estate and investment management firm based in New York. The firm’s commercial real estate debt platform provides customized capital solutions for real estate owners and developers throughout the United States. Square Mile Capital’s equity platform serves as a partner of choice for opportunistic and value add real estate investments across all property types. By identifying the impact of long-term trends on real estate values, the firm focuses on key investment themes and investment structuring in order to maximize risk-adjusted investment returns. For more information, visit www.squaremilecapital.com.
* Based on total capital commitments managed by H.I.G. Capital and affiliates.