Selig’s $530M Mixed-Use Atlanta Tower Gets Funding
- Nov 21, 2019
Selig Enterprises’ 1105 West Peachtree, a $530 million mixed-use development in Midtown Atlanta, has received both capital investment and construction financing. Cushman & Wakefield’s Atlanta Equity, Debt and Structured Finance team secured the funding on behalf of Selig.
The project—one of the largest privately capitalized developments in the city’s history—received an approximately $340 million construction loan from Blackstone. The equity partner for the 665,000-square-foot office portion of the project is an unidentified pension fund advised by L&B Advisors.
Originally designed to include 552,000 square feet of office space, the office component at 1105 West Peachtree will ultimately encompass 665,000 square feet, in response to strong market fundamentals and preleasing activity. The office tower is currently 40 percent preleased.
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As Commercial Property Executive reported not quite a year ago, Atlanta-based law firm Smith, Gambrell & Russell LLP became the 31-story office building’s first tenant, committing to the ninth through 12th floors, for a total of 102,320 square feet. The firm will have access to the acre-sized Sky Plaza atop the project’s parking deck, where the shared amenities will include a pool, green space, bar and restaurant.
The 3.6-acre project will also feature a boutique hotel, a residential condo building and about 16,500 square feet of street-level retail.
The Epicurean Atlanta will be Midtown’s first new boutique, full-service hotel in more than a decade. The Epicurean will be a 178-key hotel, and the project’s residential component will consist of 64 condo units, a Selig spokesperson told Commercial Property Executive. The company says it’s targeting an untapped market for large for-sale residences and began presales last month.
The project architect is Rule Joy Trammell + Rubio of Atlanta. Completion is scheduled for the third quarter of 2021.
Mike Ryan, Richard Henry, Brian Linnihan and Blake Cohen of Cushman & Wakefield’s Atlanta office, along with Jared Kelso and Stephen Michels of Cushman & Wakefield’s Global Hospitality group, arranged the debt and equity for the project.
Overlooked no longer
Selig first announced the 1105 West Peachtree project in December 2016, seeing it as an opportunity to participate in a Midtown corridor that had long been overlooked.
It’s the same area where MetLife Investment Management is getting underway with Midtown Union, a mixed-use project of about 500,000 square feet of office space, a 20-story hotel, 350 apartment units and 87,000 square feet of retail. In May, Invesco signed a lease to take 300,000 square feet and become the anchor tenant of the office portion.
Among Atlanta CBD office submarkets, Midtown remains the tightest, with an overall vacancy of 13.4 percent on an inventory of 19.3 million square feet, according to a recent report from Cushman & Wakefield. Class A rents there average $39.04 gross. Despite 4.3 million square feet of space under construction, the Atlanta office market is expected to remain fairly steady, not least because about 46 percent of the space underway has been preleased.