Colony Realty Sells 212 KSF Office Building in Midtown Atlanta
- Feb 04, 2014
The 212,000-square-foot office building known as 730 Midtown in Atlanta’s Midtown submarket has come under new ownership. Colony Realty Partners has sold the Class B+ property to a joint venture consisting of Harbert Management Corp.’s Harbert United States Real Estate Fund V LP and The Simpson Organization.
All parties involved are remaining mum on the sale price at the moment. Colony Realty Partners paid approximately $29.2 million for the asset in 2006.
Carrying the address of 730 Peachtree St., 730 Midtown was erected on a nearly one-acre parcel in 1965. The 11-story tower is presently 84 percent leased.
Harbert and Simpson expect to invest $2.6 million in renovations and leasing efforts at 730 Midtown. The partners have not indicated any plans to upgrade the property to a higher class; however, they don’t need to, given the current state of the market.
According to Cushman & Wakefield, the commercial real estate services firm that marketed the asset on Colony’s behalf, Midtown’s high-quality Class B office space is highly coveted, as its rental rates are substantially more desirable than those of Class A buildings. Statistics from commercial real estate services firm Colliers International support C&W’s premise. In the fourth quarter of 2013, the average rental rate was $17.99 per square-foot for Class B accommodations, and $26.02 for Class A space.