88-Square-Foot Forsyth County Data Center Sold For $10M

CUMMING, GA — Newmark Knight Frank (NKF) recently sold an 88,000-square-foot office building and data center at 5925 Cabot Parkway in Forsyth County. A local real estate development and investment firm, The Woodbery Group, purchased the building from JM Family Enterprises for $10.75 million. The building was fully leased by JM Family Enterprises at the time of transaction.

Built in 1999 and fully renovated in 2007, 5925 Cabot Parkway features 48 private offices, approximately 130 workstations, 11 conference rooms, two lounge areas and a full-service catering kitchen. The class B building also offers several fully furnished plug and play opportunities and includes a 21,000-square-foot data center with three megawatts of power with built-in redundancy. Datascan, a subsidiary of JM Family Enterprises, relocated to new and owned office space in June 2018 at Alpharetta City Center. The data center function remains at 5925 Cabot Parkway.

NKF Executive Managing Director Jason Schrago and Senior Managing Director Frank Clementi represented the seller. SK Commercial Realty’s Tom Kirbo represented the buyer.

“We were pleased to conduct this value-add transaction on behalf of JM Family Enterprises that provides them flexibility with their ongoing corporate data center function at 5925 Cabot Parkway,” Schrago said in a release. “The building offers significant potential for income growth, with the proximity to a highly skilled labor force signaling a bright future for the new owners.”

“The Atlanta data center market is gaining world-wide attention for its low cost of power and many fiber carriers," Clementi said in a release. "Additionally, fueling this growth is the recent passing of House Bill 696, offering buyers of data centers tax exemption on equipment purchases and power usage.”

5925 Cabot Parkway is close to the new Halcyon mixed-use development on McFarland Parkway that features leading restaurants and retailers such as Hog Island, MidiCi Neapolitan Pizza, Cocina & Taqueria, Butcher & Brew, Never Enough Thyme, and Cherry Street Brewpub.

According to NKF Research, metro Atlanta’s office market continues to display strong fundamentals despite a recent slowdown in job growth. Overall asking rents in Forsyth County have steadily climbed to nearly $25 per square foot, with leasing momentum expected to remain strong through 2019.