Building & Land Technology Grabs Corporate Center in Atlanta
- Apr 27, 2015
Building and Land Technology has acquired the Concourse Corporate Center, a 2.2-million-square-foot landmark office complex featuring Atlanta’s iconic “King and Queen” towers, plus a prime parcel of developable land, for a reported $489 million from Regent Partners.
“BLT is excited to own this trophy asset in the fastest growing submarket in Atlanta,” Carl Kuehner, III, BLT’s CEO, said in a company release. “Concourse presents a unique opportunity for BLT to increase the value proposition to a currently terrific roster of tenants and attract new tenants in the market. We are attracted by the supply-demand dynamics of the submarket, as well as the opportunity for a new development with uses that complement Class A office space.”
The sale was the highest-priced sale of an Atlanta office property ever, besting BentleyForbes’ $436 million acquisition of Bank of America Plaza back in 2006. Six years later, it went into foreclosure.
Concourse Corporate Center also includes the recently renovated Westin Hotel and 85,000-square-foot-Concourse Athletic Club (not included in BLT’s acquisition).
According to Kuehner, BLT will invest in further enhancements of Concourse in order to reinforce and solidify the trophy site’s reputation as the premier office project in the Perimeter submarket. Renovations will include enhancements to lobbies and public spaces, restrooms, and other common areas, and additional capital for pre-built spec suites and tenant improvements.
The “King and Queen” buildings are currently 91 percent occupied. A surge in demand for Central Perimeter office space over the last two-and- a-half years drove investor interest in the property and its development site, which is zoned to accommodate dense retail, office and residential uses.
According to Colliers International’s Atlanta Q1 Office Market Report for 2015, the overall occupancy level for Atlanta’s office market is at its highest point in six years and demand and supply fundamentals continue to benefit Atlanta’s office landlords.
Additionally, limited development activity will continue pushing some asking rents to their highest levels ever in Atlanta’s history and 2015 is poised to be one of Atlanta’s strongest performing years for office.
Boosted by the high-profile headquarters wins of Mercedes-Benz USA and State Farm Insurance Co., the Perimeter submarket today has the lowest vacancy rate of any major Atlanta submarket.
Located at the northeast quadrant of the I-285/Georgia 400 interchange, Concourse Corporate Center is in close proximity to numerous MARTA rail stations and offers an amenity-rich office park.
Regent Partners will continue as leasing and managing agent of the property on behalf of BLT.