Fortress Investment Group has acquired a 305,000-square-foot office building in Alpharetta, Georgia, for approximately $93.2 million through a sale-leaseback agreement with UPS. The property, located at 12380 Morris Road, serves as the main office for UPS’s supply chain solutions division.
The transaction values the six-story building at about $300 per square foot. Fortress completed the purchase via an affiliate and now owns the 13-acre site, which includes a parking deck and is visible from Georgia 400. Fortress declined to comment on the deal. However, this acquisition aligns with its national net-lease strategy, which covers 82 million square feet of properties.
UPS is adjusting its real estate holdings in response to declining revenue and reduced shipping volumes. The company intends to close 73 leased and owned facilities worldwide while reducing its global workforce by four percent. In Atlanta, this sale follows UPS’s recent exit from a separate 133,000-square-foot location in Sandy Springs, after which some employees were relocated to the Alpharetta office.
A spokesperson for UPS confirmed that the company will remain a tenant at the Morris Road building but did not provide further details about occupancy levels.
The property was first marketed quietly in 2022 by CBRE before being withdrawn from listing. Tim Sloan, vice chairman of Fortress, has previously compared current challenges in the office market to those faced by malls during the growth of e-commerce and highlighted differences between submarkets in terms of value retention. Fortress has also recently supported Arcis Golf’s acquisition of three notable golf courses in Atlanta.
This move is part of UPS’s broader effort to streamline operations and invest more heavily in healthcare logistics and other higher-margin areas. In its most recent quarterly report, UPS announced a year-over-year revenue decline of 2.7 percent to $21.2 billion due to lower demand and reduced business with Amazon. A neighboring vacant parcel owned by UPS Supply Chain Solutions remains available for sale.
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