Starwood Capital Pays Big Bucks for Atlanta Office Tower
- Oct 05, 2016
by Evelina Croitoru
Atlanta—Starwood Capital Group, a leading private investment firm focusing on real estate, has announced the purchase of One Atlantic Center, an office tower in Atlanta. The building was acquired by a joint venture between Starwood Global Opportunity Fund X and Core Property Capital. According to Yardi Matrix data, the property was sold by Hines Interests, which paid $307 million for it back in 2006.
Starwood did not disclose the terms of the transaction, but the Atlanta Business Chronicle reported back in June that the company was expected to pay approximately $330 million for the asset, which translates to roughly $300 per foot.
The 50-story, LEED Gold-certified office tower located at 1201 W. Peachtree St., NW., includes 1.1 million square feet of office space and a 2,100-space parking garage. The property, which was 90 percent leased at the time of sale, provides access to major highways running through Atlanta and is in close proximity to the Art Center station.
“This acquisition is consistent with our long-held investment strategy of buying high-quality assets at a meaningful discount to replacement cost in markets experiencing limited amounts of new supply and outsized job and population growth,” Mark Keatley, managing director at Starwood, said in prepared remarks.
Image courtesy of Yardi Matrix.