Episode 24: New Deal | Davis Circle
Davis Circle Flex is an opportunity to acquire a value-add last-mile industrial asset at the heart of distribution and logistics in a top market in the country, Atlanta, GA. Current tenants are well below market rents with short-term leases and Greenleaf will be able to inject capital into the project to capitalize on the near 30% rent growth and limited availability since the onset of the pandemic.
Currently, there are two tenants, however only one has longer than 1 year of lease term remaining. The short lease term remaining allows Greenleaf to come in and quickly improve the asset while maintaining some level of cash flow during the renovation and turnover process. When the in-place leases expire, our plan is to increase rental rates to market and enforce a more Landlord friendly lease structure. We will also put in-place annual rent increases of 3% or greater. The timeline to execute this plan and stabilize the property is approximately 20 months post-closing.