This Week's Atlanta Deal Sheet
An icon of the Buckhead skyline has traded hands.
The State Teachers Retirement System of Ohio purchased the Pinnacle Building at the corner of Peachtree and Lenox roads for $170.2M from The Brookdale Group, according to Fulton County property records obtained by Bisnow. That price means Pinnacle — whose tenants include the real estate brokerage firm Newmark — traded for nearly $400 per SF.
The average per square foot price in the first quarter for an office building was a little more than $200 per SF, according to Avison Young. The sale took place on May 18, according to deed records.
The Pinnacle is one of the most recognizable office towers on Atlanta's skyline, with its signature unfinished-appearing arched roof. The 21-story, 429K SF tower was purchased by Brookdale in 2015 for $148M from TIAA-CREF, a transaction that also included Brookdale picking up Two Live Oak, the shorter office building next door, for $53M.
Brookdale sold Two Live Oak in 2018 to Hartford-based Barings Estate Advisers for $82M, according to Reonomy.
So far this year, landlords have traded more than $800M in office buildings in Atlanta, including CP Group's $380M purchase of Bank of America Plaza in Midtown and Granite Properties' $202M acquisition of 3630 Peachtree on Peachtree Road in Buckhead.
A Brookdale official declined to comment. The Teachers Retirement System did not respond to messages seeking comment.
LEASES
Piedmont Healthcare is expanding its medical footprint to Downtown Atlanta in the Summerhill neighborhood.
The Atlanta-based healthcare operator has leased 6,100 SF for a Piedmont Urgent Care by WellStreet and 5K SF for a primary care location at Summerhill Station, an 87K SF Publix Super Market-anchored retail center that is part of the Summerhill project. Branch Properties is the developer of the retail center.
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Atlanta digital signage company Visix Inc. is leasing 9,500 SF at 6625 The Corners Parkway, a five-story, 103.5K SF office building in Peachtree Corners owned by Dilweg. CBRE Senior Vice President Peter McGuone and Senior Associate Parker Welton brokered the deal for the landlord. Benchmark Commercial Real Estate Services CEO Kevin Mitchell represented Visix.
CONSTRUCTION & DEVELOPMENT
Hines, better known for its office acumen, has broken ground on a three-building industrial park in Flowery Branch, a suburban community more than 40 miles north of Downtown Atlanta along Interstate 985.
Hines is developing a 445K SF distribution center in the first phase followed by two other warehouse facilities at 265K SF and 110K SF along with 98 trailer parking stalls. Called Thurmon Tanner Logistics, the first building is expected to deliver by the end of the year. NAI/Brannen Goddard has been tapped to lease the project.
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A Boston-based developer is looking to develop a variety of commercial uses on the former Gwinnett County campus for Cisco Systems.
Foxfield is planning to convert 285 acres and a 741K SF office building into a mixed-use destination with eight warehouses totaling 2.28M SF, 18 townhouses, 766 apartment units and 18K SF of commercial space at 5030 Sugarloaf Parkway in Lawrenceville, according to an application with the Georgia Department of Community Affairs.
The application is required for any proposed development that may have a regional impact on infrastructure.
Cisco moved its offices to Midtown last year. It was not clear in the application how Foxfield — which shares an address with its partner, Novaya Real Estate Ventures — will use the office building, if at all.
According to online marketing materials, JLL had been listing the property for sale and held a call for offers in September. The project, if approved, is set to deliver by 2026.
FINANCING
JLL Capital Markets has secured construction financing for 1405 Spring, a 31-story, 326-unit multifamily tower in Midtown that will be developed in a joint venture between JPX Works — developer of Lili Midtown — and Zeller. Manulife Investment Management is providing the construction loan.
JLL Senior Managing Director Ed Coco, Managing Director Matt Casey and Vice President Kelsey Bawcombe brokered the loan. Terms of the loan were not disclosed.
SALES
Atlanta-based Anchor Health Properties and Harrison Street purchased 73 Prestige Lane, a 35.5K SF medical office building in Dawsonville, from North Georgia Medical Holdings, a firm whose address is attached to North Georgia's Cleaver Medical Group.
The property is fully leased. The price was undisclosed.
Colliers Senior Vice Presidents Michael Lipton and Joshua Gregory brokered the sale.
PERSONNEL
Highland Group Investment Advisors partner Kim Bardoul has been named president of the Atlanta Hospitality Alliance's 2022 Board of Directors. Bardoul brings two decades of hotel industry experience and is the author of the annual Boutique Hotel Report.
The AHA is a peer-to-peer learning and networking organization geared toward hospitality investment leaders in Atlanta.
