Menlo Equities Buys Vacant Atlanta Office Building

Menlo Equities has expanded its commercial holdings with the acquisition of an empty spec office on Atlanta’s Westside.

The Silicon Valley investor purchased the 305,000-square-foot office portion of Echo Street West, a mixed-use development near the Atlanta Beltline and Georgia Tech’s West Campus, the Atlanta Business Chronicle reported.

The three-building office complex, at 765 Echo Street Northwest, was sold by Lincoln Property Company, which will continue to handle leasing.

The sale price wasn’t disclosed, but real estate analysts estimate the transaction cost $200 per square foot. That would be a decrease from its $450-per-square-foot estimated value when Lincoln acquired it.

The transaction reflects a growing pattern of investors seizing opportunities to acquire lower-priced assets, driven by high vacancy rates and the financial difficulties office landlords are facing.

Menlo Equities, headed by founder and managing partner Rick Holmstrom, plans to pursue tech and creative firms as tenants, marketing the property’s modern design and strategic location at Donald Lee Hollowell Parkway and Northside Drive.

The site is well-placed to draw from the university’s “deeply talented labor pool” while benefiting from outdoor spaces and the area’s miles of trails, said Michael Howell of Lincoln Property Company.

Menlo Equities’ focus on technology-centric properties makes Echo Street West a natural fit for its portfolio. The transaction comes as office development in Atlanta has slowed, with fewer projects offering the modern amenities that tenants demand.

Tech firms accounted for 18 percent of office leasing activity in the U.S. during the first three quarters of this year, according to CBRE.