$175M Phipps Tower Breaks Ground in Atlanta
- Mar 12, 2008
A joint venture between Charlotte, N.C.-based Crescent Resources L.L.C. and Manulife Financial of Toronto has begun construction of a $175 million, 20-story, LEED-designed office building in Atlanta’s Buckhead submarket. “This is the best site in Atlanta,” John Bell, vice president with Crescent, told CPN. “It is the only site left in Buckhead with a Peachtree address. It provides pedestrian access to the Ritz-Carlton. And it is on Lenox Road, which provides excellent transportation access.”Called Phipps Tower, the 486,000-square-foot building is located across the street from the Ritz-Carlton Buckhead Hotel. It will stand adjacent to and connect directly with the mixed-use Phipps Plaza, which has more than 100 shops and restaurants. A five-level parking deck will provide 1,100 parking spaces. As of the end of last year, the vacancy rate in Buckhead was 14.2 percent, according to research conducted by Grubb & Ellis Co. “A 15 percent vacancy rate is a level market in Buckhead,” Bell said. “When the vacancy rate dips below 15 percent, the market heats up just as it is now. Obviously that will change when the new buildings under construction deliver.”During the fourth quarter of 2007, the Buckhead submarket had 1.9 million square feet of office space under construction, more than any other submarket in the Atlanta metropolitan region. At the same time, asking rents for Class A Buckhead office space was $28.16 per square foot, the highest in the Atlanta metropolitan area. “Buckhead routinely obtains the highest rental rates in Atlanta,” Bell noted.Leadership in Energy and Environmental Design (LEED) features include energy efficient air and lighting systems, water and plumbing systems designed to conserve water, and enhanced indoor-air-quality features.