Real Estate News

Published on October 20th, 2016 |


Cousins Properties controls 22% of Buckhead office market after Parkway deal

With the $2 billion deal between Cousins Properties and Parkway Properties Inc. closed, Cousins now controls about 3.3 million square feet, or 22 percent, of the Buckhead office market — one of the Sun Belt’s most valuable, according to the Atlanta Business Chronicle.

No real estate company has ever owned so many trophy Buckhead buildings: 3344 Peachtree, Terminus 100 and 200, Capital City Plaza and Tower Place 200. All of those buildings, except Terminus 100 and 200, are adjacent to the proposed Park Over GA 400.

Larry Gellerstedt

Larry Gellerstedt

“One of the things I’ve learned over the past six or seven years is the power of market concentration,” Cousins President Larry Gellerstedt said in an interview with the Atlanta Business Chronicle. “We are real comfortable with the portfolio in Buckhead. No one owner has ever had that collection of assets, and we really want to see what additional value we can drive.”

The deal between Cousins and Parkway, first announced in April, also deepens Cousins’ presence in Austin, Texas, Charlotte, N.C., and Phoenix. Cousins’ portfolio will expand to 41 properties comprising about 16 million square feet and will be Atlanta’s largest office landlord.

“I think you look at this deal two ways: what are the assets you own and where are they,” Gellerstedt told the ABC. “This deal clearly gives us roughly $5 billion of assets and well over 16 million square feet in the best markets in the Sun Belt.”

In Buckhead, 3344 Peachtree, Capital City Plaza and Tower Place 200 can be considered strategically located, since early estimates are that properties within 500 feet of the proposed new Park Over GA 400 are expected to increase 20 to 30 percent in value because of the park.

In 2009, Cousins’ market capitalization was about $300 million, Gellerstedt said. In a new report from Green Street Advisors, its post-merger market cap soars to $3.4 billion.

In Buckhead, Cousins and Highwoods Properties Inc. will control 35 percent of Buckhead’s class A office buildings.

(To read the full Atlanta Business Chronicle story, click here.)


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