Falcon Acquires Corporate Headquarters Building for $22.3 Million
Falcon Real Estate has acquired the Heidelberg U.S.A. Headquarters, a two-story 175,900-square-foot office building located at 1000 Gutenberg Drive in Kennesaw, Ga., a northwest suburb of Atlanta. Falcon purchased the Class A building for $22.3 million on behalf of an overseas private investor as part of a 1031 Exchange.
Falcon advised the buyer by sourcing this off-market transaction, negotiating the purchase and financing, overseeing the due diligence process and ensuring the acquisition met the buyer’s 1031 Exchange requirements. Falcon will be the supervisory asset manager of the property.
The building is 100 percent leased by Heidelberg U.S.A, a wholly-owned subsidiary of Heidelberg Druckmaschienen AG, the world’s largest manufacturer of printing machinery. The building, which was constructed in 1994 and expanded in 1998, contains an estimated 74 percent corporate office and 26 percent of showroom/demonstration space.
“This was an attractive investment opportunity due to the strength of a corporate headquarters location for Heidelberg U.S.A., a large internationally known tenant, and an unusually long-term 23-year bondable lease with 19 years remaining on it,” stated Falcon Vice President, Ken Lorman. “The lease also features a sizable rental rate increase in the fifth year of our client’s holding period, which will enhance the property value.”
The Heidelberg U.S.A. Headquarters building is located in Kennesaw, about 25 miles northwest of downtown Atlanta. The property is located just west of the Interstate 75 and Interstate 575 interchange.