Atlanta Braves Holdings Acquires Six-Building ‘Pennant Park’ Office Complex Adjacent To The Battery Atlanta

Rhea-AI Summary

Atlanta Braves Holdings (BATRA) has acquired Pennant Park, a six-building office complex adjacent to The Battery Atlanta. The property encompasses 763,465 square feet of office space on 34 acres with over 2,700 parking spaces. The complex, previously owned by Rubenstein Partners, maintains over 80% occupancy with 24 diverse tenants, including anchor tenant The Home Depot.

The acquisition includes two components: Pennant Commons (four buildings on 17 acres with 1,700+ parking spaces) and Pennant View (two buildings on 17 acres with 970+ parking spaces). The property features premium amenities including fitness centers, conference facilities, and recreational areas. This strategic acquisition expands the company's land footprint by over 30% and increases total available square footage to over 3 million across various properties.

Positive

• Immediately accretive acquisition with 80%+ occupancy rate
• Strong anchor tenant (Home Depot) and diverse tenant base
• Increases total leasable space to over 3 million square feet
• Expands land footprint by more than 30%
• Strategic location adjacent to existing Battery Atlanta development
• Additional parking capacity for 9 million annual visitors

Negative

• 20% vacancy rate in the property
• Significant property management responsibilities and operational costs
• Potential integration and transition costs

Insights

Real Estate Investment Analyst

Atlanta Braves Holdings' acquisition of Pennant Park represents a strategic expansion of their real estate portfolio that complements their existing Battery Atlanta development. The six-building office complex adds 763,465 square feet of leasable space on 34 acres, increasing their total land footprint by over 30% and bringing their available square footage to over 3 million square feet.

What makes this acquisition particularly valuable is its immediate accretive nature, supported by three key factors: strong tenant credit quality (anchored by The Home Depot), solid occupancy exceeding 80%, and adjacency to their highly amenitized campus. The property's 24 industry-diverse tenants provide stable income streams while mitigating sector-specific risks.

The acquisition demonstrates sophisticated mixed-use development strategy beyond typical sports venue monetization. By controlling adjacent properties, BATRA creates synergies between their entertainment district and commercial real estate holdings. The additional 2,700+ parking spaces address a practical need for the approximately 9 million annual visitors while creating potential revenue streams.

Particularly noteworthy is the Pennant View component's potential for site densification, capitalizing on the area's "rapidly urbanizing trajectory." This creates embedded development options that could generate substantial future value beyond current income streams. The extensive amenities – including fitness centers, conference space, and outdoor recreation areas – position the property competitively in the office market while complementing The Battery Atlanta's live-work-play environment.

Sports Business Strategist

This acquisition represents a textbook example of a professional sports organization expanding beyond traditional revenue streams to build sustainable enterprise value. Atlanta Braves Holdings is executing a sophisticated vertical integration strategy by controlling more of the ecosystem surrounding their ballpark.

The deliberate statement that this acquisition "furthers our strategic goals of delivering value to our fans and shareholders" reveals the dual focus of their business model. For fans, expanded parking and amenities enhance the gameday experience. For shareholders, diversified revenue streams reduce dependence on cyclical sports economics and broadcast rights.

What's most significant is how this transaction accelerates the transformation of Truist Park from a standalone sports venue into an anchor for a comprehensive mixed-use district. The 34-acre acquisition strengthens BATRA's position as both a sports and real estate entity, creating multiple revenue touchpoints from the approximately 9 million annual visitors.

The strategic timing is noteworthy – BATRA is capitalizing on their successful Battery Atlanta development by expanding into adjacent properties rather than seeking disconnected opportunities. This contiguous growth allows for operational efficiencies and cross-promotional opportunities between properties. The statement about "taking professional sports well beyond traditional boundaries" signals their commitment to this diversified business model.

For a mid-market MLB team, this real estate development approach creates competitive advantages that transcend market size limitations in sports economics. By developing revenue streams independent of team performance or media contracts, BATRA is building sustainable shareholder value regardless of on-field results.

Acquisition Broadens Real Estate Asset Portfolio to Grow Enterprise Value

Property Totals 763,465 Square Feet, Situated on Approximately 34 Acres and Featuring Over 2,700 Parking Spaces

ATLANTA--(BUSINESS WIRE)-- Atlanta Braves Holdings, Inc. (Nasdaq: BATRA, BATRK) today announced the Braves Development Company’s acquisition of Pennant Park, a six-building office complex located at the intersection of I-75 and I-285 adjacent to The Battery Atlanta. Owned by Rubenstein Partners since 2017, Pennant Park features 763,465 square feet of office space situated on approximately 34 acres and includes over 2,700 parking spaces. The property currently has 24 industry-diverse tenants anchored by blue-chip organizations such as The Home Depot. The acquisition is immediately accretive given the strong credit of its tenants, occupancy of over 80% and the close proximity to our highly amenitized campus.

“This represents a strategic step in the growth of our real estate portfolio and creates a significant opportunity for Atlanta Braves Holdings to enhance the tenant experience while investing in the future of our growing community at The Battery Atlanta,” said Mike Plant, President & CEO of Braves Development Company. “Acquiring this adjacent property expands our footprint and positions us to capitalize on the interest we continue to see in The Battery Atlanta. Additionally, this will provide expanded parking for the approximately 9 million people who visit us each year.”

The acquisition of Pennant Park furthers our strategic goals of delivering value to our fans and shareholders and continues our innovative spirit in taking professional sports well beyond traditional boundaries. As the surrounding area of Truist Park and The Battery Atlanta continues to grow, we will continue to invest in opportunities that advance our core mission of delivering the best sports and entertainment experiences.

Adjacent to the Chattahoochee River National Park, Pennant Park is bordered by Interstate North Circle and Interstate North Parkway. The parcel is approximately 34 acres in size and will increase our existing land footprint by over 30%. With the addition of leasable office space, this purchase will also bring total available square footage to over 3 million square feet across our various properties. Pennant Park is comprised of two components, Pennant Commons and Pennant View:

• Pennant Commons:
  • Pennant Commons consists of four office buildings (320, 340, 360, and 380) sitting on a 17-acre site centered around a vibrant, recently upgraded multipurpose communal plaza, known as The Quad.
  • The buildings are four to six stories and include surface and structured parking totaling over 1,700 spaces.
  • Buildings 320 and 340 are fully leased to The Home Depot, and buildings 360 and 380 are multi-tenanted and leased currently to 14 tenants.

• Pennant View:
  • Pennant View consists of two office buildings (210 and 3100) sitting on a 17-acre site that are both multi-tenanted and feature multimedia lobbies that were upgraded between 2017 and 2019.
  • The buildings are six stories and include surface and structured parking totaling over 970 spaces.
  • Pennant View’s expansive site provides future opportunities for site densification, driven by the rapidly urbanizing trajectory of the area.

Additional features of the property include 24-hour security, on-site engineering, a 48-person conference center, two fitness centers, on-site car detailing services, two cafés, Social Kitchen tenant lounge and cafe, bocce ball court, putting green, multi-sport game court, helipad, lake with jogging trail, and a Cobb Community Transit System bus stop.

High-resolution map and video available here: https://www.dropbox.com/scl/fo/q76o662kj20w0qi1fybjj/AKoE39XbCcpECOCklCO2Nng?rlkey=mr4nmiqevtjmod077wsvrk1ne&st=cp076ntg&dl=0

About Atlanta Braves Holdings, Inc.

Atlanta Braves Holdings, Inc. (Nasdaq: BATRA, BATRK) consists of 100% of the ownership and voting interest in Braves Holdings, LLC, which is the owner and operator of the Atlanta Braves Major League Baseball Club and a real estate portfolio that includes the mixed-use development, The Battery Atlanta, and is the operator of the Atlanta Braves Major League Baseball Club’s stadium, Truist Park.

Important Notice Regarding Forward-Looking Statements

This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business, product and marketing strategies, future financial performance and prospects, trends and any other matters that are not historical facts. The words "believe," "estimate," "expect," "anticipate," "intend," "plan," "strategy," "continue," "seek," "may," "could" and similar expressions or statements regarding future periods are intended to identify forward-looking statements, although not all forward-looking statements may contain such words. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but such statements necessarily involve risks and uncertainties and there can be no assurance that the expectation or belief will result or be achieved or accomplished. Given these uncertainties, we caution you not to place undue reliance on these forward-looking statements. The risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, include, without limitation: ABH’s inability to replicate certain functions or the loss of benefits of contracts associated with the transition away from Liberty Media; ABH’s historical financial information not being representative of its future financial position, results of operations, or cash flows; ABH’s ability to recognize anticipated benefits from the split-off from Liberty Media; ABH’s ability to successfully transition responsibilities for various matters from Liberty Media to in-house or third party personnel and costs incurred in connection with operating as a standalone public company; ABH’s ownership, management and board of directors structure; ABH’s indebtedness and its ability to obtain additional financing on acceptable terms and cash in amounts sufficient to service debt and other financial obligations; ABH’s ability to realize the benefits of acquisitions or other strategic investments; the impact of inflation and weak economic conditions on consumer demand for products, services and events offered by ABH; the outcome of pending or future litigation or investigations; operational risks of ABH and its business affiliates with operations outside of the U.S.; ABH’s ability to use net operating loss and disallowed business interest carryforwards; ABH’s ability to comply with government regulations and potential adverse outcomes of regulatory proceedings; the regulatory and competitive environment in which ABH operates; potential changes in the nature of key strategic relationships with business partners, vendors and joint venturers; the achievement of on-field success and ability to develop, obtain and retain talented players; the impact of organized labor; the impact of the structure or an expansion of Major League Baseball; the level of broadcasting revenue that ABH and its subsidiaries receive; the impact of data losses or breaches or disruptions in ABH’s information systems and information system security; ABH’s processing, storage, sharing, use and protection of personal data; ABH’s ability to attract and retain qualified key personnel; the inherent risks in the real estate business, including, but not limited to, tenant defaults, potential liability related to environmental matters and liquidity of real estate investments; and the impact of geopolitical incidents, accidents, terrorist acts, pandemics or epidemics, natural disasters, including the effects of climate change, or other events that cause one or more events to be cancelled or postponed, are not covered by insurance, or cause reputational damage to ABH and its affiliates. These forward-looking statements speak only as of the date of this press release, and ABH expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in ABH’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of ABH, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as may be updated by subsequent filings under the Securities Exchange Act of 1934, as amended, including Forms 10-Q and 8-K, for additional information about ABH and about the risks and uncertainties related to ABH’s business which may affect the statements made in this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250402007049/en/

MEDIA CONTACT: Jennifer Giglio, Jennifer.Giglio@braves.com

INVESTOR RELATIONS CONTACT: Cameron Rudd, Cameron.Rudd@braves.com

Source: Atlanta Braves Holdings, Inc.

FAQ

What is the size and capacity of the Pennant Park acquisition by BATRA?

Pennant Park includes 763,465 square feet of office space on 34 acres, featuring six buildings and over 2,700 parking spaces.

What is the current occupancy rate of BATRA's newly acquired Pennant Park?

The property has an occupancy rate of over 80% with 24 industry-diverse tenants, anchored by The Home Depot.

How does the Pennant Park acquisition expand BATRA's real estate portfolio?

The acquisition increases BATRA's land footprint by over 30% and brings total available square footage to over 3 million square feet across various properties.

What are the two main components of BATRA's Pennant Park property?

Pennant Park comprises Pennant Commons (4 buildings on 17 acres) and Pennant View (2 buildings on 17 acres).

What amenities are included in BATRA's Pennant Park office complex?

Amenities include 24-hour security, fitness centers, conference center, cafés, recreational facilities, helipad, lake with jogging trail, and structured parking.