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Exclusive: Krog Street Market listed for sale

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Investors seek to recapitalize five-year-old project while Paces Properties hopes to stay involved

Krog Street Market—Inman Park’s Beltline-adjacent food hall darling—has been listed for sale.

According to Paces Properties officials, who developed the market from an abandoned industrial space, investors in the project are looking to recapitalize funds following the success of the redevelopment.

Merritt Lancaster, a principal with Paces Properties, indicated that the move isn’t abnormal for private equity firms, who tend to reshuffle their portfolios every few years.

Earlier this week, tenants were notified of the sale, and this morning, Paces released a “teaser” to investors who may be interested in the property. Lancaster doesn’t expect many changes with a sale, noting that for patrons it would be “business as usual.”

Still, he called the sale “bittersweet” and noted that Paces hopes to stay involved on the site, even with a new owner.

In fact, Paces Properties will hold on to the gravel parking lot at the northwest side of the development, across Krog Street from the market.

While there are no current plans to develop the site, it’s likely a building will rise on the Beltline-adjacent piece of land in the long-run.

As with other similar sales, no price has been released.

A source close to the property says news of the sale has put some neighbors on edge, as most leases for slots at Krog Street Market were structured for three to five years. Restaurants and stalls began opening in the latter half of 2014.

“So if the new owner wants to fundamentally change what the market is, that could start happening in the near future,” says the source. “They’re afraid a new owner could wreck it with bad tenants.”

But if Paces has their way, it sounds like those concerns might be unjustified for now.

One current tenant—Jennifer Johnson, co-owner of Fred’s Meat & Bread and Yalla—has an upbeat outlook on the prospects of the market changing hands.

"If anything, it could [or] should be a great thing for tenants,” said Johnson. “An influx of cash could mean some freshening up [of the property] after a busy first three years."

— Additional reporting by Eater Atlanta editor Chris Fuhrmeister