Sugarloaf acquisition announcement

ESJ Capital Partners is pleased to announce the acquisition of the Sugarloaf Portfolio, a 317,826-square-foot, five-building, single-story office campus located within the Sugarloaf Business Park in Duluth, Georgia. The campus sits at the intersection of Sugarloaf Parkway and I-85, in one of Atlanta's most dynamic and fastest-growing suburban submarkets.

This transaction reflects ESJ's continued conviction in supply-constrained suburban office markets where strong employment fundamentals, population growth, and limited new development create durable long-term value for investors.

A Well-Leased, Institutional-Quality Campus

The Sugarloaf Portfolio spans 35.88 acres and comprises five single-story, flexible office buildings originally developed between 1998 and 2001 and comprehensively repositioned in 2018. The campus benefits from over $3 million in recent capital improvements, abundant surface parking, and building configurations that accommodate a broad range of professional and flex users.

At acquisition, the portfolio is leased to 16 tenants with a weighted average lease term of 6.7 years, providing stable and diversified cash flow from day one. Current asking rents are approximately $24.75 per RSF, consistent with the submarket's competitive positioning for well-maintained suburban product.

Transaction at a Glance

Asset

Sugarloaf Portfolio (Sugarloaf Office I through V) — Premiere Parkway, Duluth, GA 30097

Total Area

317,826 sq ft across five single-story buildings on 35.88 acres

Year Built / Repositioned

1998–2001 / 2018

Tenancy

16 tenants | Weighted Average Lease Term: 6.7 years

Recent Capital Improvements

$3M+

Financing Partner

Valley Bank

Location

Sugarloaf Business Park, Duluth, GA — at the I-85 / Sugarloaf Parkway interchange

Why Gwinnett County, Why Now

Gwinnett County is the fastest-growing county in the Atlanta metropolitan area, with a population exceeding one million residents and a diversified economic base spanning technology, healthcare, logistics, and professional services. Metro Atlanta is forecast to add 19,000 new jobs in 2026, ranking fourth among major U.S. metros, with office-using employment expected to grow by approximately 4,500 new roles.

Atlanta's suburban office market posted 828,700 square feet of positive net absorption in 2025, with asking rents reaching a historic high of $32.98 per square foot across the metro. Critically, the development pipeline has contracted sharply: for the first time since 2016, no new office space was delivered to the Atlanta market in Q1 2025, reducing supply-side pressure and creating a favorable environment for well-located, well-leased existing product.

The Sugarloaf submarket, anchored by the I-85 / Sugarloaf Parkway interchange, benefits from proximity to the Infinite Energy Center, a deep amenity base, and strong corporate tenant demand from healthcare, financial services, and technology occupiers.

Investment Thesis

This acquisition is consistent with ESJ's core strategy: identifying institutional-quality assets trading at a meaningful discount to replacement cost in high-growth markets with limited new supply. The Sugarloaf Portfolio offers:

Immediate cash flow from a diversified, 16-tenant rent roll with a 6.7-year weighted average lease term.
Value creation pathways through proactive leasing, asset management, and strategic tenant retention in a supply-constrained submarket.
Attractive basis relative to replacement cost, providing downside protection and upside optionality.
Market tailwinds from Gwinnett County's sustained population and employment growth, with no meaningful new office supply in the pipeline.
Flexible building configurations that appeal to a wide range of professional and flex users, supporting long-term occupancy resilience.

ESJ Capital Partners has closed on the acquisition of the Sugarloaf Portfolio, 317,826 square feet across five single-story buildings in Duluth, Georgia, one of Atlanta's most compelling suburban office submarkets. This acquisition reflects the thesis we have been executing on consistently: acquiring institutional-quality assets at a meaningful discount to replacement cost, in markets where population growth, employment diversification, and supply constraints create durable long-term value. Gwinnett County, home to over one million residents and one of the fastest-growing counties in the country, is exactly the kind of market where we want to be building our portfolio. The Sugarloaf campus is well-leased, well-located, and well-positioned for the next chapter.

Arnaud Sitbon,
President & CEO, ESJ Capital Partners

Acknowledgments

ESJ Capital Partners extends its gratitude to all partners who supported this transaction:

Valley Bank — Financing Partner
Cushman & Wakefield — Financing Advisory (Tyler Morss, Michael Zelin, Walker Brown, Marshall Scallan, Bindi Shah, Maanav Patel)

Building the Portfolio

The Sugarloaf acquisition adds a significant suburban office platform to ESJ's growing Southeast portfolio. Following the successful full-cycle exit of the University of St. Augustine for Health Sciences campus in February 2026, this transaction demonstrates ESJ's ability to deploy capital efficiently across asset classes and markets, delivering differentiated opportunities for its global investor base. More to come.

About ESJ Capital Partners

ESJ Capital Partners is a management-owned real estate investment firm founded in 2008, specializing in multifamily, educational infrastructure, and office repositioning across the Southeast United States. With offices in Miami (Aventura) and Luxembourg, ESJ connects global capital to carefully vetted U.S. opportunities through funds, club deals, and direct investments — built on disciplined criteria and hands-on asset management. ESJ has overseen more than $1.2 billion in assets across 69+ projects.

Acquisition Announcement