Tishman Speyer to Build 30-Story Office Tower in Buckhead, Atlanta
- Jul 25, 2014
To take advantage of Atlanta’s tightened office market, Tishman Speyer is moving forward with construction plans of a 30-story office tower, which will complete its Three Alliance Center development that already features two signature office towers and a five-star residential tower in Atlanta’s Buckhead submarket.
The planned 500,000 square foot building, Atlanta’s first new major office project to be started in seven years, will be part of a project that is a prominently positioned addition to the Buckhead Skyline, standing closest to Buckhead’s gateway intersection of GA 400 and The Buckhead Loop.
This is Tishman Speyer’s second ground up development since purchasing Trizec’s Atlanta assets and opening the office in 2006. After letting go of One Alliance due to the recession, Tishman Speyer is looking to establish a presence in Alliance Center once again. The property would become the third and final building in the complex, joining One and Two Alliance, both owned by Highwoods Properties now, according to Wildmor Realty.
Tishman Speyer sold Two Alliance Center in 2012 for $152 million to Highwoods Properties, one of the highest prices paid for Atlanta office. But it faced problems with its loan on One Alliance and eventually sent the $165 million loan back to special servicer Orix Capital, according to various news sources. Tishman’s marketing of the new tower comes at a time when the office market has tightened all around since the early 2000’s, including Class B properties.
The project reportedly is estimated to cost $160 million, and it could collect almost $40 per square foot once completed. With office tenants shopping for more than 2 million square feet in the Atlanta market in 2014, Tishman Speyer is counting on this trend to continue.
“After several years of minimal construction, tenant demand for Class A office space in Atlanta is currently very strong, with the Buckhead submarket leading the way,” said Tishman Speyer’s Regional Managing Director, Jim Meyer in the news release. “Now is a good time for us to take advantage of that pent-up demand and deliver a spectacular new addition to the Buckhead skyline.”
Designed by architect Mack Scogin of Mack Scogin Merrill Elam, Three Alliance Center will feature Atlanta’s first glass curtain wall, and will be built to LEED Gold specifications. Tenants will have direct access to both highway and MARTA transportation, an on-site amenity package, and nearby high-quality retailers, hotels and restaurants, according to the news release. Turner Construction will serve as general contractor.
Affiliates of Tishman Speyer also own and operate Colony Square and Midtown Plaza in Atlanta, Meyer told Commercial Property Executive.
Tishman Speyer is always looking for additional investment opportunities in Atlanta, just as in all of our markets,” Meyer concluded, adding that currently the firm is focused on “completing the construction and lease up of Three Alliance Center.”