On the heels of a successful 2019, Atlanta-based SG Property Services (SGPS) plans to extend the firm’s footprint into new markets, expand its focus on ground-up development and identify more off-market acquisition opportunities. Last year, SGPS completed 12 transactions, totaling in excess of $110 million.
 
“Our strategy continues to evolve and adapt, while staying laser-focused on medical office, a sector in which we have deep expertise and can add significant value to our acquired assets,” said Paul Shailendra, president of SGPS. “We had a very strong 2019 and are well-positioned to build on that success in 2020.”
 
A few notable transactions completed by the firm in 2019 include the sales of three metro Atlanta medical office buildings: 10 Eastbrook Bend in Peachtree City, Ga, Towne Lake Overlook in Woodstock, Ga., and 135 North Park Place in Stockbridge, Ga.  
 
At Towne Lake Overlook, SGPS made capital improvements and increased the tenancy by 40% prior to the sale. The 135 North Park Place building was completely vacant when the firm acquired it, and over 18 months, SGPS implemented several property enhancements, leased 86% of the property and subsequently sold the asset to an institutional investor.  
 
These sales demonstrate the firm’s proven strategy of acquiring medical office buildings, investing capital in the properties, increasing occupancy and positioning them for disposition, often to institutional buyers.
 
In December, the firm entered into the Raleigh, North Carolina market through a joint venture. The JV completed the acquisition of a 32,000-square-foot medical office building anchored by a surgical center. SGPS plans to reposition the asset through leasehold improvements, capital enhancements and a more robust marketing strategy.
 
The Raleigh acquisition established another new market for SGPS in addition to the Dallas Fort Worth metro area. Expect to see the firm enter more markets in 2020. The Raleigh acquisition also demonstrates SGPS’s strategy of focusing on off-market opportunities. “Such a deal can offer the owner, who may for instance be a physicians’ group in the building, the chance to have a capital event,” said Shailendra. “So, the tenant remains in the same location, sheds management obligations and SGPS can focus on adding further value to the building.”
 
SGPS recently broke ground on a single-tenant build-to-suit project and plans to start additional development projects in the first half of 2020.
 
SPGS’s portfolio now includes 28 properties.