KBS Subsidiary Eyes Atlantic Station Landmark Tower
- Aug 01, 2014
By Balazs Szekely, Associate Editor
171 17th Street in Atlantic Station will change hands soon, as a company affiliated with KBS Capital Markets Group’s Real Estate Investment Trust III has recently entered into an agreement to acquire the office building for the price of $132.5 million or $260 per square foot.
Developed by AIG Global Real Estate, the 22-story Class A office tower was the first skyscraper in Atlanta west of the Downtown Connector and north of 14th Street. Completed in 2004, the LEED Silver-Core and Shell certified high-rise was the first of its kind globally, and the first of any level in Georgia to receive the distinction. It was initially called the Southtrust Tower and was originally intended to be the Atlanta headquarters for SouthTrust. Soon after 171 17th Street’s inauguration, the banking giant merged with Wachovia, which was bought by Wells Fargo in 2009. As part of the brand overhaul, the San Francisco-based bank changed the signs on the facades and the building is now often referred to as the Wells Fargo Building.
KBS intends to fund the acquisition of the asset with proceeds from a mortgage loan from an unaffiliated lender and proceeds from its offering. It is currently negotiating the terms of the mortgage loan; thus, whether or not the transaction will be closed is yet uncertain.
The 509,237 square foot property is located on approximately 0.7 acres of land and it is currently 89 percent leased to 11 tenants. The current aggregate annual effective base rent for the building’s tenants is around $10.5 million and the current weighted-average remaining lease term for them is approximately 6.6 years, according to a recent written announcement.
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