Published on August 17th, 2016 |1
Buckhead’s 2nd largest office tower, Atlanta Plaza, sells for $137.5 million
A joint venture between Banyan Street Capital and Oaktree Capital Management bought the 34-story building, which overlooks luxury mall Lenox Square and connects to the MARTA Lenox station. The sale closed July 28, according to Fulton County property records.
California State Teachers’ Retirement System put the tower on the sales block last November, according to the ABC report. CBRE Global has managed the asset on behalf of CalSTRS.
Atlanta Plaza’s new owners will have leasing holes to fill in the tower, which is about 78 percent leased, according to ABC. At almost 651,000 square feet, it is the second largest Buckhead office building behind only Cousins Properties Inc.’s Terminus 100.
Atlanta Plaza, at 950 East Paces Road, has less expensive rents than the towers on Peachtree, where rates on some floors have climbed to $40 a foot or higher, according to the ABC story. Atlanta Plaza has the advantage of the connection to the Lenox MARTA station.
The sale comes as Atlanta Plaza could be a contender for the new North American headquarters of GE Digital’s information technology unit. Atlanta Business Chronicle reported Aug. 16 GE Digital is consolidating the division, which in coming years could bring at least 400 jobs to the metro region.
GE is said to be considering buildings such as Atlanta Plaza, which are in walking distance of residential units, restaurants and MARTA but aren’t asking top-of-the-market leasing rates, according to the Business Chronicle. Subscribers can read the full article here.