Krog Street Market owner targets Virginia-Highland with $17.3M acquisition
The new owner of food hall Krog Street Market is adding more intown Atlanta shops and restaurants to its portfolio — this time targeting the Virginia-Highland neighborhood.
Atlanta real estate investment firm 26th Street Partners paid $17.3 million for two segments of Virginia-Highland retail space, according to Atlanta developer, broker and preservationist Gene Kansas of Gene Kansas Commercial Real Estate.
Kansas and his colleague Ted Bradford represented the seller in the transaction, Scott Stern of Highland Real Estate, who had owned the properties for decades and shepherded their restoration.
The buildings, some that date back a century, comprise key pieces of Virginia-Highland’s walkable commercial district and are home to neighborhood staples such as Paolo’s Gelato and San Francisco Coffee Roasting Co.
“For over 40 years, it has been an honor to serve as the steward of these properties and a participant in the life of the Virginia-Highland community,” Stern, the seller, said in a prepared statement. “What began as an investment became a long and meaningful chapter of my life, and I leave it with pride, gratitude and confidence in its future.”
The acquisition is among a wave of new investment in Virginia-Highland, known for its historic bungalows, dining and shopping, and community events such as Porchfest. Atlanta developer Third & Urban has also scooped up parts of the retail district and earlier this year announced a $3 million face-lift.
It’s not clear yet what 26th Street Partners may plan in Virginia-Highland. The firm declined to comment to The Atlanta Journal-Constitution.
The firm’s purchase included the retail strip known as the Highland Avenue Market at the intersection of North Highland and Amsterdam avenues. It’s home to tenants such as San Francisco Coffee, Mali Restaurant, and a U.S. Postal Service location.
The deal also included what’s called the “VA-HI” building at Virginia and North Highland avenues, where Paolo’s has operated since 1999. Pielands Subs & Slice, a pizzeria, and Kinship, a butcher and sundry shop, are other tenants.
Kansas said the tenants have helped shaped the identity of the Virginia-Highland neighborhood.
“I believe people provide relevance to spaces and places through our actions and interactions there — through tradition, ritual and daily routine,” Kansas said in a prepared statement. “In exchange, our own image and identity are informed by them.”
Combined, the buildings span about 30,000 square feet, according to Kansas. The off-market deal closed Friday, he said. The transaction has not yet posted in Fulton County property records.
26th Street Partners has quickly emerged as a prominent retail landlord in Atlanta.
The firm last fall completed a landmark deal to acquire the Krog District for $210 million. That acquisition included Krog Street Market and other properties along the Atlanta Beltline’s Eastside Trail.
Also in 2025, 26th Street Partners bought two other intown Atlanta shopping centers: Plaza on Ponce, home of the Majestic Diner and Plaza Theatre, and Morningside Village.
The executives who run 26th Street Partners hail from Jamestown, the Atlanta-based developer of Ponce City Market. They have shied away from giving media interviews about their strategy, and their website declares they are “quietly building.”
Kansas’ firm — well-known for buying and rehabbing historic Atlanta properties, such as the former Atlanta Daily World building on Auburn Avenue — worked with Stern to restore the Virginia-Highland properties over the years.
For example, an extensive rehab of the VA-HI building was completed in 2021, led by Bradford. The project preserved the Craftsmen details and terracotta tile roof, as well as uncovered original features such as rear windows and a terrazzo floor.
“We’ve had the pleasure of working with Scott Stern for over eight years with a mission and directive to make these properties the best version of themselves,” Kansas said. “Over the years, there have been many interested parties and offers.”
Kansas added that Stern picked 26th Street Partners because of “their track record of investing in neighborhood-oriented retail throughout intown Atlanta.”
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